OTHER NEWS - July 16, 1991

T-Bill Rates Fall: The Treasury sold $10.4 billion of new three-month bills at an average discount rate of 5.56%, down from 5.58% last week. Another $10.5 billion of new six-month bills was sold at an average discount rate of 5.70%, down from 5.71% last week. The new discount rates understate the actual return to investors: 5.73% for three-month bills, with a $10,000 bill selling for $9,859.50, and 5.97% for a six-month bill selling for $9,711.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 5.70% 3-month: 5.56%