BANKING & FINANCE - Nov. 22, 1994

Short-Term T-Bill Rates Higher: The Treasury Department sold $13.7 billion of new three-month bills at an average discount rate of 5.40%, up from 5.29% last week. Another $13.7 billion of new six-month bills at an average discount rate of 5.85%, up from 5.72%, was sold. The three-month bill rate was the highest since they sold for 5.51% on Aug. 5, 1991. The six-month bill rate was the highest since they averaged 5.91% on March 11, 1991. The new discount rates understate the actual return to investors--5.55% for three-month bills with a $10,000 bill selling for $9,865, and 6.11% for a six-month bill selling for $9,705.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.