BANKING & FINANCE - Sept. 6, 1995
<i> Times Staff and Wire Reports</i>
T-Bill Rates Drop: Interest rates on short-term Treasury securities fell to the lowest levels in nearly a year. The Treasury Department sold $12.1 billion in three-month bills at an average discount rate of 5.30%, down from 5.34% last week. An additional $12 billion was sold in six-month bills at an average discount rate of 5.30%, also down from 5.34%. 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--5.46% for three-month bills, with a $10,000 bill selling for $9,866.00, and 5.54% for a six-month bill selling for $9,732.10.
