BANKING & FINANCE - Jan. 30, 1996

Rates on Treasury Bills Rise: The Treasury Department sold $14.1 billion in three-month bills at an average discount rate of 5.01%, up from 4.99% last week. Another $14 billion was sold in six-month bills at an average discount rate of 4.90%, up from 4.88%. The three-month bill rate was the highest since they sold for 5.02% on Jan. 16. The six-month bill rate was the highest since they averaged 4.93%, also on Jan. 16. The new discount rates understate the actual return to investors: 5.16% for three-month bills, with a $10,000 bill selling for $9,873.40, and 5.11% for a six-month bill selling for $9,752.30. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills rose to 5.05% last week from 5.03% the previous week.

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T-Bill Auction

3-month: 5.01%

6-month: 4.90%