Interest rates on short-term Treasury bills shot up.
- Share via
The Treasury Department sold $6.6 billion in new three-month bills at an average discount rate of 5.98%, up from 5.53% last week. Another $6.6 billion of new six-month bills was sold at an average discount rate of 6.08%, up from 5.63% last week. The rates were the highest since three-month bills sold for 5.99% on June 30 and six-month bills averaged 6.13% on June 23. The new discount rates understate the actual return to investors--5.99% for three-month bills with a $10,000 bill selling for $9,848.80 and 6.38% for six-month bills selling for $9,692.60. The discount rate reflects the price discount received when government securities are purchased at less than face value.
For the record:
12:00 a.m. April 15, 1987 FOR THE RECORD
Los Angeles Times Wednesday April 15, 1987 Home Edition Business Part 4 Page 2 Column 3 Financial Desk 1 inches; 29 words Type of Material: Correction; Wire
The investment rate this week for three-month Treasury bills rose to 6.17%. Because of incorrect material supplied by the Associated Press, the rate was inaccurately stated in Tuesday’s Briefly column.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
