BANKING & FINANCE - Feb. 14, 1995

Interest Rates Mixed in Treasury Auction: The Treasury Department sold $13.9 billion in three-month bills at an average discount rate of 5.82%, down from 5.83% last week. Another $13.8 billion was sold in six-month bills at an average discount rate of 6.15%, up from 6.10%. The three-month bill rate was the lowest since they sold for 5.79% on Jan. 30. The six-month bill rate was the highest since they averaged 6.24% on Jan. 23. The new discount rates understate the actual return to investors--5.99% for three-month bills with a $10,000 bill selling for $9,852.90 and 6.44% for a six-month bill selling for $9,689.10. The Federal Reserve Bank said the average yield for one-year Treasury bills fell to 6.79% last week from 6.88% the previous week.