BANKING & FINANCE - April 2, 1996

T-Bill Rates Edge Higher: Interest rates on short-term Treasury securities rose at auction to the highest level in more than three months. The Treasury Department sold $13.6 billion in three-month bills at an average discount rate of 5.07%, up from 4.99% last week. Another $13.6 billion was sold in six-month bills at an average discount rate of 5.06%, up from 4.97%. The three-month bill rate was the highest since they sold for 5.15% last Dec. 18. The six-month bill rate was the highest since they also averaged 5.15% on Dec. 18. The new discount rates understate the actual return to investors--5.21% for three-month bills with a $10,000 bill selling for $9,870.40 and 5.26% for a six-month bill selling for $9,744.20. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills fell to 5.42% last week from 5.44% the previous week. Meanwhile, the Treasury announced a revised schedule for selling two- and five-year securities on April 8 and 9, respectively.

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T-Bill Auction

April 1

3-month: 5.07%

6-month: 5.06%