BANKING & FINANCE - April 25, 1995
<i> Times Staff and Wire Reports</i>
Short-Term T-Bill Rates Rise: The Treasury Department sold $11.7 billion of new three-month bills at an average discount rate of 5.66%, up from 5.56% last week. Another $11.7 billion of new six-month bills were sold at an average discount rate of 5.75%, up from 5.69%. The three-month bill rate was the highest since they sold for 5.70% on April 10. The six-month bill rate was the highest since they averaged 5.84% on April 10. The new discount rates understate the actual return to investors: 5.84% for three-month bills, with a $10,000 bill selling for $9,856.90, and 6.02% for a six-month bill selling for $9,709.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.
