BANKING & FINANCE - March 16, 1993

Interest Rates Up on Short-Term T-Bills: Interest rates on short-term Treasury securities rose in auction to the highest level since mid-January. The Treasury Department sold $11.7 billion in three-month bills at an average discount rate of 3%, up from 2.98% last week. Another $11.6 billion was sold in six-month bills at an average discount rate of 3.12%, up from 3.09% last week. The three-month bill rate was the highest since they sold for 3.03% on Jan. 19. The six-month bill rate was the highest since they averaged 3.13%, also on Jan. 19. The new discount rates understate the actual return to investors--3.06% for three-month bills with a $10,000 bill selling for $9,924.20 and 3.21% for a six-month bill selling for $9,842.30.