BANKING & FINANCE - March 17, 1992

Treasury Bill Rates Hit Three-Month High: Interest rates on short-term Treasury securities rose at auction to the highest level since December. The Treasury Department sold $11.4 billion in three-month bills at an average discount rate of 4.09%, up from 4.02% last week. Another $11.4 billion in six-month bills was sold at an average discount rate of 4.27%, up from 4.13% last week. The three-month bill rate was the highest since they sold for 4.14% on Dec. 16. The six-month bill rate was the highest since they averaged 4.39% on Dec. 2. The new discount rates understate the actual return to investors--4.19% for three-month bills, with a $10,000 bill selling for $9,896.60, and 4.43% for a six-month bill selling for $9,784.10.