BANKING & FINANCE - Jan. 18, 1995
<i> Times Staff and Wire Reports</i>
T-Bill Rates Fall: The Treasury Department sold $13.5 billion of new three-month bills at an average discount rate of 5.77%, down from 5.87% last week. Another $13.5 billion of new six-month bills was sold at an average discount rate of 6.19%, down from 6.42%. The three-month bill rate was the lowest since they sold for 5.56% on Dec. 27. The six-month bill rate was the lowest since they averaged 5.86% on Nov. 28. The new discount rates understate the actual return to investors--5.94% for three-month bills with a $10,000 bill selling for $9,854.10 and 6.48% for a six-month bill selling for $9,687.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.
