BANKING & FINANCE - June 14, 1994
From Times Staff and Wire Reports
T-Bill Rates Edge Up: The Treasury Department sold $12.1 billion of new three-month bills at an average discount rate of 4.16%, up from 4.15% last week. Another $12.1 billion of new six-month bills was sold at an average discount rate of 4.55%, up from 4.53%. The three-month bill rate was the highest since they sold for 4.23% on May 31. The six-month bill rate was the highest since they averaged 4.67% the same day. The new discount rates understate the actual return to investors--4.26% for three-month bills, with a $10,000 bill selling for $9,894.80, and 4.72% for a six-month bill selling for $9,770. The discount rate reflects the price discount received when government securities are purchased at less than face value.
