BANKING & FINANCE - Sept. 15, 1992

Rates on Short-Term Bills Lowest in Nearly 30 Years: The Treasury sold $10.6 billion of new three-month bills at an average discount rate of 2.89%, down from 2.91% last week. Another $10.6 billion of new six-month bills was sold at an average discount rate of 2.90%, down from 2.95% last week. The three-month bill rate was the lowest since they sold for 2.884% on April 22, 1963. The six-month bill rate was the lowest since they averaged 2.861% on Dec. 10, 1962. The new discount rates understate the actual return to investors--2.95% for three-month bills, with a $10,000 bill selling for $9,926.90, and 2.98% for a six-month bill selling for $9,853.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 2.90% 3-month: 2.89%