BANKING & FINANCE - Feb. 23, 1993

Treasury Bill Rates Mixed: The Treasury Department sold $11.7 billion of new three-month bills at an average discount rate of 2.96%, up from 2.93% last week. An additional $11.6 billion of new six-month bills was sold at an average discount rate of 3.06%, down from 3.08% last week. The three-month bill rate was the highest since they sold for 2.97% on Feb. 1. The six-month bill rate was the lowest since they averaged 2.95% on Oct. 13. The new discount rates understate the actual return to investors--3.02% for three-month bills, with a $10,000 bill selling for $9,925.20, and 3.15% for a six-month bill selling for $9,845.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.