BANKING & FINANCE - Jan. 19, 1994

Treasury Bill Rates Fall: The Treasury Department sold $12.7 billion of new three-month bills at an average discount rate of 2.99%, down from 3.02% last week. An additional $12.6 billion in new six-month bills was sold at an average discount rate of 3.15%, down from 3.18% last week. The three-month bill rate was the lowest since they sold for 2.96% on Oct. 4. The six-month bill rate was the lowest since they averaged 3.14% on Oct. 18. The new discount rates understate the actual return to investors: 3.06% for three-month bills, with a $10,000 bill selling for $9,924.40, and 3.24% for a six-month bill selling for $9,840.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.