BANKING & FINANCE - Sept. 14, 1993

Treasury Bill Rates Rise: The Treasury sold $11.3 billion of new three-month bills at an average discount rate of 2.98%, up from 2.95% last week. Another $11.3 billion of new six-month bills was sold at an average discount rate of 3.06%, up from 3.03% last week. The three-month bill rate was the highest since they sold for 3.02% on Aug. 30. The six-month bill rate was the highest since they averaged 3.11%, also on Aug. 30. 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 3.15% for a six-month bill selling for $9,845.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.