BANKING & FINANCE - Aug. 24, 1993

Short-Term Treasury Rates Mixed: The Treasury Department sold $12.4 billion in three-month bills at an average discount interest rate of 3.02%, down from 3.03% last week. An additional $12.2 billion was sold in six-month bills at an average discount rate of 3.12%, the same as last week. The rate for the three-month bill was the lowest since it averaged 3.01% on July 6. The new discount rates understate investors’ actual return: 3.09% for three-month bills with a $10,000 bill selling for $9,922.80 and 3.21% for a six-month bill selling for $9,842.30. Separately, the Federal Reserve Board said the average yield for one-year Treasury bills, the most popular index for changing adjustable-rate mortgages, fell to 3.41% last week, down from 3.48% the previous week.