BANKING & FINANCE - April 9, 1996

Short-Term T-Bill Rates Mixed: Interest rates on short-term Treasury securities were mixed in auction. The Treasury Department sold $13.6 billion in three-month bills at an average discount rate of 5.03%, down from 5.07% last week. Another $13.6 billion in six-month bills were sold at an average discount rate of 5.19%, up from 5.06%. The three-month bill rate was the lowest since they sold for 4.99% on March 25. The six-month bill rate was the highest since they averaged 5.20% on Dec. 11. The new discount rates understate the actual return to investors--5.16% for three-month bills with a $10,000 bill selling for $9,872.90 and 5.40% for a six-month bill selling for $9,737.60. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills rose to 5.48% last week from 5.42% the previous week. The Treasury will sell five-year notes today. Two-year notes will be sold April 23.

T-Bill Auction

April 8

3-month: 5.03%

6-month: 5.19%