BANKING & FINANCE - March 9, 1993

Treasury Bill Rates Rise: The Treasury Department sold $11.7 billion of new three-month bills at an average discount rate of 2.98%, up from 2.97% last week. Another $11.7 billion of new six-month bills was sold at an average discount rate of 3.09%, up from 3.05%. The three-month bill rate was the highest since they also sold for 2.98% on Jan. 25. The six-month bill rate was the highest since they averaged 3.09% on Feb. 8. The new discount rates understate the actual return to investors--3.04% for three-month bills, with a $10,000 bill selling for $9,924.70, and 3.18% for a six-month bill selling for $9,843.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.