BANKING & FINANCE - Sept. 28, 1993

Treasury Bill Rates Fall: The Treasury Department sold $11.2 billion in new three-month bills at an average discount rate of 2.90%, down from 2.93% last week. Another $11.2 billion in new six-month bills was sold at an average discount rate of 3.02%, down from 3.06% last week. The rates were the lowest since May 10, when the three-month bill sold for 2.89% and the six-month rate averaged 2.99%. The new discount rates understate the actual return to investors: 2.96% for three-month bills, with a $10,000 bill selling for $9,926.70, and 3.11% for a six-month bill selling for $9,847.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.