BANKING & FINANCE - Dec. 7, 1993

T-Bill Rates Mixed: Interest rates on short-term Treasury securities were mixed in Monday’s auction. The Treasury sold $13.5 billion in three-month bills at an average discount rate of 3.11%, down from 3.12% last week. An additional $13.4 billion worth were sold in six-month bills at an average discount rate of 3.27%, up from 3.26% last week. 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 3.37% for a six-month bill selling for $9,834.70. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 3.62% last week, up from 3.61% the previous week.