BANKING & FINANCE - Nov. 29, 1994

T-Bill Rates Rise to Three-Year High: The Treasury Department sold $13.6 billion of new three-month bills at an average discount rate of 5.44%, up from 5.40% last week. Another $13.6 billion of new six-month bills were sold at an average discount rate of 5.86%, up from 5.85%. 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 5.59% for three-month bills with a $10,000 bill selling for $9,862.50 and 6.12% for a six-month bill selling for $9,703.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.