BANKING

Treasury Yields Highest Since Summer: The Treasury sold $11.8 billion of new three-month bills at an average discount rate of 3.13%, up from 3.10% last week. An additional $11.9 billion of new six-month bills was sold at an average discount rate of 3.37%, up from 3.31% last week. The three-month bill rate was the highest since they sold for 3.17% on Aug. 31. The six-month bill rate was the highest since they averaged 3.66% on June 29. The new discount rates understate the actual return to investors--3.20% for three-month bills with a $10,000 bill selling for $9,920.90 and 3.48% for a six-month bill selling for $9,829.60. The discount rate reflects the price discount received when government securities are purchased at less than face value.