BANKING & FINANCE - Feb. 22, 1995
<i> Times Staff and Wire Reports</i>
Treasury Bill Rates Decline: The Treasury Department sold $13.5 billion of new three-month bills at an average discount rate of 5.74%, down from 5.82% last week. Another $13.5 billion of new six-month bills were sold at an average discount rate of 6.01%, down from 6.15%. 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 it averaged 5.86% on Nov. 28. The new discount rates understate the actual return to investors: 5.91% for three-month bills, with a $10,000 bill selling for $9,854.90, and 6.28% for a six-month bill selling for $9,596.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.
