BANKING & FINANCE - June 18, 1996

Short-Term T-Bill Rates Fall: The Treasury Department sold $13.6 billion in three-month bills at an average discount rate of 5.08%, down from 5.16% last week. An additional $13.5 billion was sold in six-month bills at an average rate of 5.27%, down from 5.34%. The three-month bill rate is the lowest since they sold for 5.03% on May 28. The six-month rate is the lowest since they averaged 5.21% on June 3. Investors’ actual return: 5.22% for three-month bills, with a $10,000 bill selling for $9,871.60, and 5.49% for a six-month bill selling for $9,733.60. In a separate report, the Federal Reserve Board said the average yield for one-year T-bills rose to 5.86% last week from 5.78% the previous week. The next auction of two-year notes is scheduled for June 25; for five-year notes, June 26; and for 10-year notes, July 9.

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T-Bill Auction

6-month: June: 5.27%

3-month: June: 5.08%