BANKING & FINANCE - Jan. 4, 1995
From Times Staff and Wire Reports
T-Bill Rates Rise: The Treasury Department sold $13.4 billion of new three-month bills at an average discount rate of 5.78%, up from 5.56% last week. Another $13.4 billion of new six-month bills was sold at an average discount rate of 6.37%, up from 6.24%. The three-month bill rate was the highest since they sold for 5.83% on Dec. 5. The six-month bill rate was the highest since they averaged 6.51% on Jan. 7, 1991. The new discount rates understate the actual return to investors--5.95% for three-month bills, with a $10,000 bill selling for $9,853.90, and 6.67% for a six-month bill selling for $9,678.00. The discount rate reflects the price discount received when government securities are purchased at less than face value.
