BANKING & FINANCE - Sept. 10, 1991

Treasury Bill Yields Decline: The Treasury sold $10.7 billion of new three-month bills at an average discount rate of 5.29%, down from 5.34% last week. Another $10.7 billion of new six-month bills was sold at an average discount rate of 5.30%, down from 5.39% last week. The three-month bill rate was the lowest since the 5.17% of Aug. 19. The six-month bill rate was the lowest since the 5.23% of the same date. The new discount rates understate the actual return to investors--5.45% for three-month bills, with a $10,000 bill selling for $9,866.30, and 5.54% for a six-month bill selling for $9,732.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 5.30% 3-month: 5.29%