BANKING & FINANCE - July 18, 1995
<i> Times Staff and Wire Reports</i>
T-Bills Rates Edge Higher: The Treasury Department sold $13.2 billion of new three-month bills at an average discount rate of 5.46%, up from 5.40% last week. Another $13.2 billion of new six-month bills were sold at an average discount rate of 5.40%, up from 5.30%. The three-month bill rate was the highest since the bills sold for 5.53% on July 3. The six-month bill rate was the highest since it averaged 5.46% the same day. 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 5.64% for a six-month bill selling for $9,727. The discount rate reflects the price discount received when government securities are purchased at less than face value.
