BANKING & FINANCE - June 27, 1995
<i> Times Staff and Wire Reports</i>
T-Bill Rates Fall: The Treasury Department sold $13.7 billion of new three-month bills at an average discount rate of 5.35%, down from 5.46% last week. An additional $13.7 billion of new six-month bills was sold at an average discount rate of 5.34%, down from 5.42%. The three-month bill rate was the lowest since they sold for 5.29% on Nov. 14. The six-month bill rate was the lowest since they averaged 5.22% on Sept. 26. The new discount rates understate the actual return to investors: 5.51% for three-month bills, with a $10,000 bill selling for $9,864.80, and 5.58% for a six-month bill selling for $9,730.00. The discount rate reflects the price discount received when government securities are purchased at less than face value.
