BANKING & FINANCE - Feb. 13, 1996

T-Bill Rates Fall: Interest rates on short-term Treasury securities fell in auction to the lowest level in more than a year. The Treasury Department sold $13.8 billion in three-month bills at an average discount rate of 4.80%, down from 4.88% last week. Another $13.8 billion was sold in six-month bills at an average discount rate of 4.71%, down from 4.79%. The three-month bill rate was the lowest since they sold for 4.79% on Sept. 26, 1994. The six-month bill rate was the lowest since they averaged 4.60% on June 27, 1994. The new discount rates understate the actual return to investors: 4.94% for three-month bills, with a $10,000 bill selling for $9,878.70, and 4.90% for a six-month bill selling for $9,761.90. The Treasury will sell two-year and five-year notes on Feb. 27 and 28, respectively. One-year notes will be sold on Feb. 29.