BANKING & FINANCE - June 15, 1993

Short-Term T-Bill Rates Fall: The Treasury Department sold $12 billion of new three-month bills at an average discount rate of 3.07%, down from 3.14% last week. Another $12 billion of new six-month bills was sold at an average discount rate of 3.19%, down from 3.30% last week. The rates were the lowest since May 24, when the three-month bill sold for 3.06% and the six-month bill rate averaged 3.19%. The new discount rates understate the actual return to investors: 3.14% for three-month bills with a $10,000 bill selling for $9,922.40 and 3.29% for a six-month bill selling for $9,838.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.