BANKING & FINANCE - April 5, 1994

T-Bill Rates Rise: The Treasury Department sold $12.7 billion of new three-month bills at an average discount rate of 3.71%, up from 3.5% last week. Another $12.6 billion of new six-month bills was sold at an average discount rate of 4.02%, up from 3.85% last week. The three-month bill rate was the highest since the bills sold for 3.75% on June 1, 1992. The rate for six-month bills was the highest since it averaged 4.19% on March 30, 1992. The new discount rates understate the actual return to investors--3.8% for three-month bills, with a $10,000 bill selling for $9,906.20, and 4.16% for a six-month bill selling for $9,796.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.