BANKING & FINANCE - Feb. 17, 1993

Treasury Bill Rates Drop: The Treasury sold $11.7 billion of new three-month bills at an average discount rate of 2.93%, down from 2.94% last week. An additional $11.6 billion of new six-month bills was sold at an average discount rate of 3.08%, down from 3.09% last week. The rates were the lowest since Oct. 13, when the three-month bills sold for 2.88% and six-month bills averaged 2.95%. The new discount rates understate the actual return to investors: 2.99% for three-month bills with a $10,000 bill selling for $9,925.90, and 3.17% for a six-month bill selling for $9,844.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.