BANKING & FINANCE - Jan. 3, 1996

Rates Mixed on Short-Term T Bills: The Treasury Department sold $14.1 billion in three-month bills at an average discount rate of 5.04%, up from 4.91% last week. An additional $14.0 billion was sold in six-month bills at an average discount rate of 5.03%, down from 5.04%. The three-month bill’s rate was the highest since they sold for 5.15% on Dec. 18. The six-month bill’s rate was the lowest since it averaged 4.99% on Sept. 12. The new discount rates understate the actual return to investors: 5.19% for three-month bills, with a $10,000 bill selling for $9,872.60, and 5.25% for a six-month bill selling for $9,744.30.