BANKING & FINANCE - Aug. 10, 1993

T-Bill Rates Fall: The Treasury Department sold $12.4 billion of new three-month bills at an average discount rate of 3.05%, down from 3.10% last week. An additional $12.3 billion of new six-month bills was sold at an average discount rate of 3.18%, down from 3.25% last week. The rates were the lowest since July 19, when three-month bills sold for 3.05% and the six-month rate averaged 3.15%. The new discount rates understate the actual return to investors: 3.11% for three-month bills with a $10,000 bill selling for $9,922.10, and 3.28% for a six-month bill selling for $9,839.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.