BANKING & FINANCE - July 7, 1993

Short-Term Rates Fall: Interest rates on short-term Treasury securities fell at auction to the lowest level in seven weeks. The Treasury Department sold $12.2 billion in three-month bills at an average discount rate of 3.01%, down from 3.05% last week. Another $12.2 billion was sold in six-month bills at an average discount rate of 3.10%, down from 3.14% last week. The rates were the lowest since May 17, when three-month bills sold for 3.00% and six-month bills averaged 3.10%. The new discount rates understate the actual return to investors: 3.08% for three-month bills, with a $10,000 bill selling for $9,923.90, and 3.19% for a six-month bill selling for $9,843.30.

T-Bill Auction

6-month: 3.10% 3-month: 3.01%