BANKING & FINANCE - Sept. 21, 1993

Treasury Bill Rates Mixed: The Treasury Department sold $11.2 billion of new three-month bills at an average discount rate of 2.93%, down from 2.98% last week. An additional $11.3 billion of new six-month bills was sold at an average discount rate of 3.06%, the same as last week. The three-month bill rate was the lowest since they sold for 2.89% on May 10. The new discount rates understate the actual return to investors: 2.99% for three-month bills, with a $10,000 bill selling for $9,925.90, and 3.15% for a six-month bill selling for $9,845.30. The Federal Reserve Board also said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 3.38% last week, up from 3.32%.