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Banking & Finance

February 08, 1994|From Times Staff and Wire Reports

T-Bill Rates Soar: The Treasury sold $12.7 billion of new three-month bills at an average discount rate of 3.24%, up from 2.99% last week. Another $12.7 billion in new six-month bills was sold at an average discount rate of 3.40%, up from 3.16% last week. The three-month bill rate was the highest since they sold for 3.26% on Dec. 14, 1992. The six-month bill rate was the highest since they averaged 3.43% on Dec. 14, 1992. The new discount rates understate the actual return to investors: 3.31% for three-month bills, with a $10,000 bill selling for $9,918.10, and 3.51% for a six-month bill selling for $9,928.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction:

6-month: 3.40%

3-month: 3.24%

FOR THE RECORD - BRIEFLY BANKING & FINANCE From Times Staff and Wire Reports
Los Angeles Times Thursday February 10, 1994 Home Edition Business Part D Page 2 Column 1 Financial Desk 2 inches; 62 words Type of Material: Column; Brief; Correction
T-Bill Rate Correction: The Treasury sold $12.7 billion of new six-month bills at an average discount rate of 3.40%, up from 3.16% last week. The rate was incorrectly reported in Tuesday's editions. The new discount rate understates the actual return to investors of 3.51% for a six-month bill selling for $9,828.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.

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