BANKING & FINANCE - July 11, 1995
<i> Times Staff and Wire Reports</i>
T-Bill Rates Drop: The Treasury Department sold $13.6 billion of new three-month bills at an average discount rate of 5.40%, down from 5.53% last week. Another $13.6 billion of new six-month bills was sold at an average discount rate of 5.30%, down from 5.46%. The three-month bill rate was the lowest since they sold for 5.35% on June 26. 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--5.57% for three-month bills, with a $10,000 bill selling for $9,863.50, and 5.54% for a six-month bill selling for $9,732.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.
