BANKING & FINANCE - July 25, 1995

Short-Term T-Bill Rates Rise: The Treasury Department sold $13.3 billion in three-month bills at an average discount rate of 5.47%, up from 5.46% last week. Another $13.3 billion was sold in six-month bills at an average discount rate of 5.46%, up from 5.40%. The three-month bill rate was the highest since they sold for 5.53% on July 3. The six-month bill rate was the highest since they averaged 5.56% on June 12. The new discount rates understate the actual return to investors: 5.64% for three-month bills, with a $10,000 bill selling for $9,861.70, and 5.71% for a six-month bill selling for $9,724.00. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills rose to 5.64% last week from 5.47% the previous week.