BANKING & FINANCE - April 13, 1993

Short-Term T-Bill Rates Slide: Interest rates on short-term Treasury securities fell at auction to the lowest level since October. The Treasury Department sold $11.1 billion in three-month bills Monday at an average discount rate of 2.89%, down from 2.92% last week. Another $11.1 billion was sold in six-month bills at an average discount rate of 3%, down from 3.04% last week. The rates were the lowest since Oct. 13, when the three-month bill sold for 2.88% and the six-month bill rate averaged 2.95%. The new discount rates understate the actual return to investors--2.95% for three-month bills with a $10,000 bill selling for $9,926.90, and 3.09% for a six-month bill selling for $9,848.30.