OTHER NEWS - Aug. 2, 1994

Treasury Yields Fall in Auction: Interest rates on short-term Treasury securities fell to the lowest level in two weeks. The Treasury Department sold $12.6 billion in three-month bills at an average discount rate of 4.35%, down from 4.43% last week. Another $12.4 billion was sold in six-month bills at an average discount rate of 4.75%, down from 4.83%. The three-month bill rate was the lowest since they sold for 4.31% on July 18. The six-month bill rate was the lowest since they averaged 4.71% the same day. The new discount rates understate the actual return to investors: 4.46% for three-month bills, with a $10,000 bill selling for $9,890, and 4.93% for a six-month bill selling for $9,759.90.

T-Bill Auction: Aug. 1, 1994

6-month: 4.75%

3-month: 4.35%