BANKING & FINANCE - March 5, 1996

Short-Term T-Bill Rates Mixed: The Treasury Department sold $15.2 billion in three-month bills at an average discount rate of 4.89%, up from 4.86% last week. An additional $15.4 billion was sold in six-month bills at an average discount rate of 4.8%, unchanged from the previous week. The three-month bill rate was the highest since they sold for 5.01% on Jan. 29. The six-month bill rate was the highest since they averaged 4.9%, also on Jan. 29. The new discount rates understate the actual return to investors: 5.02% for three-month bills, with a $10,000 bill selling for $9,876.40, and 4.99% for a six-month bill selling for $9,757.30. The Treasury will sell two-year notes March 27 and three-year notes March 28. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills rose to 5.14% last week from 5.04% the previous week.