BANKING & FINANCE - June 11, 1996

T-Bill Rates at ’96 High: Interest rates on short-term Treasury securities rose in auction to the highest level of the year. The Treasury Department sold $15.7 billion in three-month bills at an average discount rate of 5.16%, up from 5.09% last week. An additional $15.6 billion was sold in six-month bills at an average discount rate of 5.34%, up from 5.21%. The three-month bill rate was the highest since they sold for 5.30% on Dec. 11. The six-month bill rate was the highest since they averaged 5.38% on Oct. 2. The new discount rates understate the actual return to investors: 5.30% for three-month bills, with a $10,000 bill selling for $9,869.60, and 5.57% for a six-month bill selling for $9,730.00. The next auction of two-year notes is scheduled for June 25, five-year notes on June 26.