BANKING & FINANCE - March 26, 1996

T-Bill Rates Dip: The Treasury Department sold $13.6 billion in three-month bills at an average discount rate of 4.99%, down from 5.02% last week. Another $13.5 billion was sold in six-month bills at an average discount rate of 4.97%, down from 5.06%. The three-month bill rate was the lowest since they sold for 4.95% on March 11. The six-month bill rate was the lowest since they averaged 4.8% on March 4. The new discount rates understate the actual return to investors: 5.12% for three-month bills, with a $10,000 bill selling for $9,873.90, and 5.17% for a six-month bill selling for $9,748.70. Separately, the Federal Reserve Board said the average yield for one-year Treasury bills rose to 5.44% last week from 5.41% the previous week. Meanwhile, the Treasury postponed this week’s auctions of $30.25 billion in two- and five-year notes, citing the lack of congressional action to raise the U.S. debt ceiling.