BANKING & FINANCE - Nov. 8, 1994

Treasury Bill Rates Rise to Three-Year Highs: The Treasury Department sold $13.7 billion of new three-month bills at an average discount rate of 5.25%, up from 5.07% last week. Another $13.6 billion of new six-month bills were sold at an average discount rate of 5.68%, up from 5.51%. The three-month bill rate was the highest since they sold for 5.29% on Sept. 9, 1991. The six-month bill rate was the highest since they averaged 5.69% on July 29, 1991. The new discount rates understate the actual return to investors: 5.39% for three-month bills, with a $10,000 bill selling for $9,867.30, and 5.93% for a six-month bill selling for $9,712.80.