BANKING & FINANCE - Dec. 29, 1992

Interest Rates on Short-Term Treasury Securities Rise: Interest rates on short-term Treasury securities rose at auction to the highest level in two weeks. The Treasury Department sold $12.4 billion in three-month bills at an average discount rate of 3.22%, up from 3.16% last week. Another $12.4 billion was sold in six-month bills at an average discount rate of 3.38%, up from 3.32% last week. The three-month bill rate was the highest since they sold for 3.26% on Dec. 14. The six-month bill rate was the highest since they averaged 3.43%, also on Dec. 14. The new discount rates understate the actual return to investors--3.29% for three-month bills, with a $10,000 bill selling for $9,918.60 and 3.49% for a six-month bill selling for $9,829.10.