BANKING & FINANCE - Oct. 31, 1995

T-Bill Rates Mixed: Interest rates on short-term Treasury securities were mixed in auction. The Treasury Department sold $12.6 billion in three-month bills at an average discount rate of 5.29%, up from 5.22% last week. Another $12.8 billion was sold in six-month bills at an average discount rate of 5.31%, down from 5.33%. The three-month bill rate was the highest since they sold for 5.32% on Oct. 16. The six-month bill rate was the lowest since they averaged 5.27% on Sept. 25. The new discount rates understate the actual return to investors--5.45% for three-month bills, with a $10,000 bill selling for $9,866.30, and 5.55% for a six-month bill selling for $9,731.60. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills fell to 5.58% last week from 5.59% the previous week.