BANKING & FINANCE - Nov. 14, 1995

Short-Term Treasury Rates Rise: The Treasury Department sold $14.6 billion in three-month bills at an average discount rate of 5.43%, up from 5.36% last week. Another $14.8 billion was sold in six-month bills at an average discount rate of 5.33%, up from 5.29%. The three-month rate was the highest since they sold for 5.44% on July 31. The six-month rate was the highest since they averaged 5.34% on Oct. 16. The new discount rates understate the actual return to investors--5.60% for three-month bills with a $10,000 bill selling for $9,862.70 and 5.57% for a six-month bill selling for $9,730.50. Also, the Federal Reserve Board said the average yield for one-year T-bills, the most popular index for adjustable-rate mortgages, fell to 5.45% last week from 5.48% the week before.