BANKING & FINANCE - Dec. 28, 1994

T-Bill Rates Drop: Interest rates on short-term Treasury securities fell in auction to the lowest level in a month. The Treasury Department sold $13.0 billion in three-month bills at an average discount rate of 5.56%, down from 5.59% last week. An additional $13.1 billion was sold in six-month bills at an average discount rate of 6.24%, down from 6.30%. The three-month bill rate was the lowest since the bills sold for 5.44% on Nov. 28. The six-month bill rate was the lowest since it averaged 5.86%, also Nov. 28. The new discount rates understate the actual return to investors: 5.72% for three-month bills, with a $10,000 bill selling for $9,859.50 and 6.53% for a six-month bill selling for $9,684.50.