BANKING & FINANCE - Feb. 1, 1994

Rates Rise on T-Bills: The Treasury Department sold $12.6 billion of new three-month bills at an average discount rate of 2.99%, up from 2.96% last week. Another $12.6 billion of new six-month bills was sold at an average discount rate of 3.16%, up from 3.14% last week. The three-month bill rate was the highest since they sold for 3.02% on Jan. 10. The six-month bill rate was the highest since they averaged 3.18%, also on Jan. 10. 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 3.26% for a six-month bill selling for $9,840.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction:

6-month: 3.16%

3-month: 2.99%