BANKING & FINANCE - Dec. 13, 1994

Short-Term Treasury Bill Rates Drop: The interest rates fell in auction to the lowest level in two weeks. The Treasury Department sold $13.7 billion in three-month bills at an average discount rate of 5.76%, down from 5.83% last week. Another $13.7 billion was sold in six-month bills at an average discount rate of 6.32%, down from 6.33%. The three-month bill rate was the lowest since it averaged 5.44% on Nov. 28. The six-month bill rate was the lowest since it averaged 5.86%, also on Nov. 28. The new discount rates understate the actual return to investors: 5.93% for three-month bills, with a $10,000 bill selling for $9,854.40, and 6.62% for a six-month bill selling for $9,680.50.