BANKING & FINANCE - July 4, 1995
<i> Times Staff and Wire Reports</i>
Treasury Bills Rates Rise: The Treasury Department sold $13.6 billion of new three-month bills at an average discount rate of 5.53%, up from 5.35% last week. Another $13.6 billion of new six-month bills was sold at an average discount rate of 5.46%, up from 5.34%. The three-month bill rate was the highest since they sold for 5.57% on June 12. The six-month bill rate was the highest since they averaged 5.56% the same day. The new discount rates understate the actual return to investors--5.70% for three-month bills with a $10,000 bill selling for $9,860.20 and 5.71% for a six-month bill selling for $9,724.00. The discount rate reflects the price discount received when government securities are purchased at less than face value.
