BANKING & FINANCE - Nov. 2, 1993

Treasury Bill Rates Rise: The Treasury Department sold $13.5 billion in new three-month bills at an average discount rate of 3.11%, up from 3.08% last week. An additional $13.4 billion in new six-month bills was sold at an average discount rate of 3.25%, up from 3.19% last week. The three-month bill rate was the highest since they sold for 3.14% on June 7. The six-month bill rate was the highest since Aug. 2, when they also averaged 3.25%. The new discount rates understate the actual return to investors: 3.18% for three-month bills, with a $10,000 bill selling for $9,921.40, and 3.35% for a six-month bill selling for $9,835.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.