BANKING & FINANCE - June 13, 1995

Treasury Bill Interest Rates Rise: The Treasury Department sold $14.3 billion of new three-month bills at an average discount rate of 5.57%, up from 5.48% last week and the highest rate since they sold for 5.64% on May 30. Another $14.3 billion of new six-month bills was sold at an average discount rate of 5.56%, up from 5.35% and the highest rate since they averaged 5.61% on May 30. The new discount rates understate the actual return to investors: 5.74% for three-month bills, with a $10,000 bill selling for $9,859.20, and 5.82% for a six-month bill selling for $9,718.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.