BANKING & FINANCE - Nov. 11, 1994
From Times Staff and Wire Reports
T-Bill Interest Rates Rise: Rates on the 52-week Treasury bills rose at auction to the highest levels in nearly four years. The average discount rate was 6.09%, up from 5.72% at the last auction Oct. 13. It was the highest average since the 6.22% of Jan. 10, 1991. The bills will carry an equivalent coupon interest rate of 6.48%, with each $10,000 in face value selling for $9,384.20. Sales totaled $17.06 billion out of bids of $55.18 billion. The Treasury Department also sold 37-day cash management bills at an average discount rate of 5.11%. The discount rate understates the actual return to investors: 5.21%, with a $10,000 bill selling for $9,947.50. A total of $12.01 billion in bills were sold out of bids totaling $49.81 billion.
