BANKING & FINANCE - May 2, 1995

T-Bill Rates Rise: The Treasury Department sold $12.4 billion of new three-month bills at an average discount rate of 5.74%, up from 5.66% last week. Another $12.3 billion of new six-month bills were sold at an average discount rate of 5.84%, up from 5.75%. The three-month bill rate was the highest since they sold for 5.76% on April 3. The six-month bill rate was the highest since they averaged 5.90% on that date. The new discount rates understate the actual return to investors: 5.92% for three-month bills, with a $10,000 bill selling for $9,854.90, and 6.12% for a six-month bill selling for $9,704.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.