BANKING & FINANCE - Oct. 3, 1995

T-Bill Rates Rise: Interest rates on short-term Treasury securities rose in auction to the highest level in more than a month. The Treasury Department sold $12.6 billion in three-month bills at an average discount rate of 5.34%, up from 5.14% last week. Another $12.6 billion was sold in six-month bills at an average discount rate of 5.38%, up from 5.27%. The three-month bill rate was the highest since they sold for 5.43% on Aug. 21. The six-month bill rate was the highest since they also averaged 5.43% that day. The new discount rates understate the actual return to investors--5.50% for three-month bills, with a $10,000 bill selling for $9,865, and 5.62% for a six-month bill selling for $9,728.