BANKING & FINANCE - May 18, 1993

Treasury Bill Rates Rise: The Treasury Department sold $12.1 billion of new three-month bills at an average discount rate of 3%, up from 2.89% last week. Another $12 billion of new six-month bills was sold at an average discount rate of 3.10%, up from 2.99% last week. The three-month bill rate was the highest since they sold for 3.03% on Jan. 19. The six-month bill rate was the highest since they averaged 3.12% on March 15. The new discount rates understate the actual return to investors--3.06% for three-month bills with a $10,000 bill selling for $9,924.20 and 3.19% for a six-month bill selling for $9,843.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.