BANKING & FINANCE - March 7, 1995
<i> Times Staff and Wire Reports</i>
Treasury Bill Rates Rise: The Treasury Department sold $13.0 billion of new three-month bills at an average discount rate of 5.77%, up from 5.73% last week. Another $13.1 billion of six-month bills was sold at an average discount rate of 6.00%, up from 5.90%. The three-month bill rate was the highest since it averaged 5.82% on Feb. 13. The six-month bill rate was the highest since it averaged 6.01% on Feb. 21. The new discount rates understate the actual return to investors: 5.95% for three-month bills, with a $10,000 bill selling for $9,854.10, and 6.29% for a six-month bill selling for $9,696.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.
