BANKING & FINANCE - July 13, 1993

T-Bill Rates Up: The Treasury Department sold $12.4 billion of new three-month bills at an average discount rate of 3.04%, up from 3.01% last week. An additional $12.3 billion of new six-month bills was sold at an average discount rate of 3.14%, up from 3.10% last week. The rates were the highest since June 28, when the three-month bill sold for 3.05% and the six-month bill averaged 3.14%. The new discount rates understate the actual return to investors: 3.10% for three-month bills, with a $10,000 bill selling for $9,923.20, and 3.23% for a six-month bill selling for $9,841.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.