BANKING

T-Bill Rates Fall: The Treasury Department sold $12.4 billion of new three-month bills at an average discount rate of 4.31%, down from 4.50% last week. Another $12.4 billion of new six-month bills was sold at an average discount rate of 4.71%, down from 4.94%. The three-month bill rate was the lowest since they sold for 4.20% on June 27, and the six-month bill rate was the lowest since they averaged 4.60% the same day. The new discount rates understate the actual return to investors: 4.42% for three-month bills, with a $10,000 bill selling for $9,891.10, and 4.89% for a six-month bill selling for $9,761.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction

3-month: 4.31%

6-month: 4.71%