BANKING & FINANCE - Dec. 6, 1994

T-Bill Rates Rise to Highest Level in Nearly Four Years: The Treasury sold $13.6 billion of new three-month bills at an average discount rate of 5.83%, up from 5.44% last week. Another $13.6 billion of new six-month bills was sold at an average discount rate of 6.33%, up from 5.86%. The three-month bill rate was the highest since they averaged 5.86% on March 25, 1991. The six-month bill rate was the highest since they averaged 6.51% on Jan. 7, 1991. The new discount rates understate the actual return to investors: 6% for three-month bills, with a $10,000 bill selling for $9,852.60, and 6.63% for a six-month bill selling for $9,680. The discount rate reflects the price discount received when government securities are purchased at less than face value.