BANKING & FINANCE - Nov. 15, 1994

T-Bill Rates at Three-Year High: The Treasury Department sold $13.6 billion of new three-month bills at an average discount rate of 5.29%, up from 5.25% last week. Another $13.6 billion of new six-month bills were sold at an average discount rate of 5.72%, up from 5.68%. The three-month bill rate was the highest since it averaged 5.34% on Sept. 3, 1991. The six-month bill rate was the highest since it averaged 5.76% on June 24, 1991. The new discount rates understate the actual return to investors: 5.44% for three-month bills, with a $10,000 bill selling for $9,866.30, and 5.97% for a six-month bill selling for $9,710.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.