BANKING & FINANCE - Oct. 13, 1993

Treasury Bill Rates Rise: The Treasury Department sold $12.9 billion of new three-month bills at an average discount rate of 3.04%, up from 2.96% last week. An additional $12.8 billion of new six-month bills was sold at an average discount rate of 3.12%, up from 3.08%. The three-month bill rate was the highest since they sold for 3.05% on Aug. 9. The six-month bill rate was the highest since they averaged 3.12% on Aug. 23. 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 3.21% for a six-month bill selling for $9,842.30. The discount rate reflects the price discount on securities bought at less than face value.