BANKING & FINANCE - July 20, 1993

T-Bill Rates Rise: The Treasury Department sold $12.3 billion in new three-month bills at an average discount rate of 3.05%, up from 3.04% last week. An additional $12.2 billion in new six-month bills were sold at an average discount rate of 3.15%, up from 3.14% last week. The three-month bill rate was the highest since they sold for 3.05% on June 28. The six-month bill rate was the highest since they averaged 3.19% on June 21. The new discount rates understate the actual return to investors: 3.12% for three-month bills, with a $10,000 bill selling for $9,922.90, and 3.24% for a six-month bill selling for $9,840.80. The discount rate reflects the price discount when the bills are purchased at less than face value.