BANKING & FINANCE - Sept. 20, 1994
From Times Staff and Wire Reports
T-Bill Rates Near 3-Year High: Interest rates on six-month Treasury securities rose in auction to their highest levels since Oct. 21, 1991. Rates for three-month bills were unchanged. The Treasury Department sold $11.7 billion in six-month bills at an average discount rate of 5.05%, up from 4.99%. It sold another $11.6 billion in three-month bills at an average discount rate of 4.61%, the same as last week. The new discount rates understate the actual return to investors: 4.73% for three-month bills, with a $10,000 bill selling for $9,883.50, and 5.25% for a six-month bill selling for $9,744.70. The average yield for one-year Treasury bills rose to 5.72% last week from 5.62% the previous week.
