BANKING & FINANCE - July 27, 1993

Treasury Bill Rates Rise: The Treasury Department sold $12.3 billion of new three-month bills at an average discount rate of 3.10%, up from 3.05% last week. An additional $12.3 billion of new six-month bills were sold at an average discount rate of 3.24%, up from 3.15% last week. The three-month bill rate was the highest since June 21, when they also sold for 3.10%. The six-month bill rate was the highest since they averaged 3.30% on June 7. The new discount rates understate the actual return to investors--3.17% for three-month bills with a $10,000-bill selling for $9,921.60 and 3.34% for a six-month bill selling for $9,836.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.