BANKING & FINANCE - Jan. 10, 1996

T-Bill Rates Lower at Auction: Interest rates were lower at the weekly U.S. Treasury bill auction, delayed a day by a storm that covered the Atlantic seaboard with snow. The Treasury sold $14.1 billion of three-month bills at an average discount rate of 5.03%, down from 5.04% a week earlier and the lowest since 4.91% on Dec. 26, 1995. Another $14.081 billion of six-month bills were sold at an average discount rate of 5.02%, down from 5.03% a week earlier and the lowest since 4.99% on Sept. 12, 1994. The new discount rates understate the actual return to investors--5.18% for three-month bills with a $10,000 bill selling for $9,872.90, and 5.24% for a six-month bill selling for $9,746.20. Because the Federal Reserve Board was closed due to the storm, the average yield on one-year Treasury bills was not available.