BANKING & FINANCE - March 3, 1992

T-Bill Rates Rise: The Treasury sold $11.4 billion of new three-month bills at an average discount rate of 4.02%, up from 3.96% last week. Another $11.4 billion of new six-month bills were sold at an average discount rate of 4.10%, up from 4.08% last week. The new discount rates understate the actual return to investors--4.12% for three-month bills, with a $10,000 bill selling for $9,898.40, and 4.25% for a six-month bill selling for $9,792.70. The discount rate reflects the price discount received when government securities are purchased at less than face value. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 4.41% last week from 4.37% the previous week.

T-Bill Auction 6-month: 4.10% 3-month: 4.02%