Interest Rates Slightly Higher at Auction: Short-term Treasury securities’ interest rates rose slightly in auction. The Treasury Department sold $12.1 billion in three-month bills at an average discount rate of 5.43%, up from 5.42% last week. Another $12.1 billion in six-month bills was sold, also at an average discount rate of 5.43%, up from 5.42%. The three-month bill rate was the highest since they sold for 5.44% on July 31. The six-month bill rate was the highest since they averaged 5.46% on July 24. The new discount rates understate the actual return to investors--5.60% for three-month bills with a $10,000 bill selling for $9,861.20 and 5.68% for a six-month bill selling for $9,725.50. The Federal Reserve said that the average yield for one-year Treasury bills rose to 5.86% last week from 5.71% the previous week.
BANKING & FINANCE
<i> Times Staff and Wire Reports</i>