ORANGE COUNTY IN BANKRUPTCY : High-Interest Events

Orange County’s loss-ridden investment portfolio, now shrunk to $5.4 billion, is extremely sensitive to hikes in interest rates--and to news that makes the markets fear higher rates ahead. Each 0.01 percentage point rise in rates will cost the fund another $3 million, according to Salomon Bros., the county’s financial adviser. Some economic news that county officials will be watching:

TODAY * November consumer price index, industrial production and capacity utilization. Interest rates could rise if this data points to a faster-growing economy. * Size of two- and five-year Treasury note auctions announced. A larger-than-expected auction could drive interest rates higher, since traders worry whether there will be enough buyers to purchase the new issues. In effect, higher yields will be needed to attract buyers.

FRIDAY * November housing starts. Signs of strong building activity could drive rates higher.

DEC. 20 * Meeting of the Federal Open Market Committee, which will decide whether the Fed should boost rates again. * Two-year Treasury note auction.

DEC. 21 * Five-year Treasury note auction.