BANKING & FINANCE - June 28, 1994

T-Bill Rates Rise Slightly: The Treasury Department sold $11 billion of new three-month bills at an average discount rate of 4.20%, up from 4.18% last week. Another $11 billion of new six-month bills was sold at an average discount rate of 4.60%, up from 4.55%. The three-month bill rate was the highest since they sold for 4.23% on May 31. The six-month bill rate was the highest since they averaged 4.67%, also on May 31. The new discount rates understate the actual return to investors: 4.31% for three-month bills, with a $10,000 bill selling for $9,893.80, and 4.78% for a six-month bill selling for $9,767.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction

3-month: 4.20%

6-month: 4.60%