BANKING & FINANCE - Sept. 7, 1994

T-Bill Rates Fall: The Treasury Department sold $11.6 billion of new three-month bills at an average discount rate of 4.58%, down from 4.61% last week. Another $11.7 billion of new six-month bills was sold at an average discount rate of 4.89%, down from 4.93%. The three-month bill rate was the lowest since they sold for 4.43% on Aug. 8. The six-month bill rate was the lowest since they averaged 4.75% on Aug. 1. The new discount rates understate the actual return to investors: 4.70% for three-month bills, with a $10,000 bill selling for $9,884.20, and 5.08% for a six-month bill selling for $9,752.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.