BANKING & FINANCE - Sept. 13, 1994

6-Month T-Bills Hit 3-Year High: The Treasury Department sold $11.6 billion of new three-month bills at an average discount rate of 4.61%, up from 4.58% last week. Another $11.7 billion of new six-month bills was sold at an average discount rate of 4.99%, up from 4.89%. The three-month bill rate was the highest since Aug. 22, when they sold for 4.62%. The six-month bill rate was the highest since Oct. 28, 1991, when they averaged 5.04%. The new discount rates understate the actual return to investors: 4.73% for three-month bills, with a $10,000 bill selling for $9,883.50, and 5.19% for a six-month bill selling for $9,747.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.