BANKING & FINANCE - March 14, 1995

T-Bill Rates Fall: The Treasury Department said it sold $12.4 billion of new three-month bills at an average discount rate of 5.76%, down from 5.77% last week. Another $12.4 billion of new six-month bills were sold at an average discount rate of 5.92%, down from 6%. The rates were the lowest since Feb. 27, when they averaged 5.73% for the three-month bill and 5.90% for the six-month bill. The new discount rates understate the actual return to investors: 5.94% for three-month bills, with a $10,000 bill selling for $9,854.40, and 6.20% for a six-month bill selling for $9,700.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.