BANKING & FINANCE - Aug. 1, 1995

Short-Term T-Bill Rates Fall: Interest rates on short-term Treasury securities fell in Monday’s auction to the lowest level in three weeks. The Treasury Department sold $12.8 billion in three-month bills at an average discount rate of 5.44%, down from 5.47% last week. An additional $12.7 billion was sold in six-month bills at an average discount rate of 5.39%, down from 5.46%. The three-month bill rate is the lowest since they sold for 5.40% on July 10. The six-month bill rate is the lowest since they averaged 5.30% the same day. In a separate report, the Federal Reserve Board said Monday that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 5.72% last week from 5.64% the previous week.