BANKING & FINANCE - April 21, 1992

Short-Term Interest Rates Rise: The Treasury sold $11.4 billion of new three-month bills at an average discount rate of 3.69%, up from 3.60% last week. Another $11.4 billion of new six-month bills was sold at an average discount rate of 3.86%, up from 3.73% last week. The rates were the highest since April 6, when three-month bills sold for 3.95% and six-month bills averaged 4.02%. The new discount rates understate the actual return to investors--3.78% for three-month bills, with a $10,000 bill selling for $9,906.70, and 3.99% for a six-month bill selling for $9,804.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.