BANKING & FINANCE - Aug. 9, 1994

T-Bills Hit 4-Week High: The Treasury sold $12.4 billion of new three-month bills at an average discount rate of 4.43%, up from 4.35% last week. Another $12.5 billion of new six-month bills sold at an average discount rate of 4.93%, up from 4.75%. The three-month-bill rate was the highest since they sold for 4.50% on July 11. The six-month bill rate was the highest since they averaged 4.94% the same day. The new discount rates understate the actual return to investors: 4.54% for three-month bills, with a $10,000 bill selling for $9,888, and 5.13% for a six-month bill selling for $9,750.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.