BANKING & FINANCE - Oct. 12, 1994
From Times Staff and Wire Reports
T-Bill Rates Mixed: The Treasury Department sold $13 billion of new three-month bills at an average discount rate of 4.92%, the same as last week. Another $13.1 billion of new six-month bills were sold at an average discount rate of 5.34%, down from 5.38% last week. The six-month bill rate was the lowest since it averaged 5.22% on Sept. 26.
The new discount rates understate the actual return to investors: 5.05% for three-month bills, with a $10,000 bill selling for $9,875.60, and 5.57% for a six-month bill selling for $9,730.00. The discount rate reflects the price discount received when government securities are purchased at less than face value.
