BANKING & FINANCE - June 20, 1995
<i> Times Staff and Wire Reports</i>
Rates Slip on Short-Term T-Bills: The Treasury Department sold $14.3 billion of new three-month bills at an average discount rate of 5.46%, down from 5.57% last week. An additional $14.3 billion of new six-month bills was sold at an average discount rate of 5.42%, down from 5.56%. The three-month bill rate was the lowest since they sold for 5.44% on Nov. 28. The new discount rates understate the actual return to investors--5.63% for three-month bills, with a $10,000 bill selling for $9,862 and 5.67% for a six-month bill selling for $9,726. The discount rate reflects the price discount received when government securities are purchased at less than face value.
