OTHER NEWS - Aug. 20, 1991

T-Bill Rates Fall: The Treasury sold $10.4 billion of new three-month bills at an average discount rate of 5.17%, down from 5.30% last week. Another $10.4 billion of new six-month bills was sold at an average discount rate of 5.23%, down from 5.39% last week. The three-month bill rate was the lowest since they sold for 5.12% on Oct. 26, 1987. The six-month bill rate was the lowest since they averaged 5.21% on Nov. 27, 1986. The new discount rates understate the actual return to investors: 5.33% for three-month bills, with a $10,000 bill selling for $9,869.30, and 5.46% for a six-month bill selling for $9,735.60. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 5.23% 3-month: 5.17%