BANKING & FINANCE - Aug. 25, 1992

Treasury Rates Rise: Interest rates on short-term Treasury securities rose at auction to the highest level in three weeks. The Treasury Department sold $11.63 billion in three-month bills at an average discount rate of 3.14%, up from 3.10% last week. An additional $11.65 billion in six-month bills was sold at an average discount rate of 3.24%, up from 3.18% last week. The rates were the highest since Aug. 3, when three-month bills sold for 3.20% and the six-month rate averaged 3.30%. The new discount rates understate the actual return to investors--3.21% for three-month bills, with a $10,000 bill selling for $9,919.80, and 3.34% for a six-month bill selling for $9,836.20.