BANKING & FINANCE - April 12, 1994

Short-Term T-Bill Rates Mixed: Rates declined for three-month bills and inched up for six-month bills at auction. The Treasury Department sold $12.4 billion in three-month bills at an average discount rate of 3.63%, down from 3.71% last week. Another $12.2 billion was sold in six-month bills at an average discount rate of 4.03%, up from 4.02%. The three-month rate was the lowest since it averaged 3.5% on March 28. The six-month rate was the highest since it averaged 4.19% on March 30, 1992. The new discount rates understate the actual return to investors: 3.72% for three-month bills, with a $10,000 bill selling for $9,908.20, and 4.17% for a six-month bill selling for $9,796.30.