BANKING & FINANCE - Aug. 15, 1995

T-Bill Rates Edge Up: The Treasury Department sold $12.1 billion in three-month bills at an average discount rate of 5.42%, up from 5.41% last week. Another $12.1 billion was sold in six-month bills, also at an average discount rate of 5.42%, up from 5.40%. The three-month bill rate was the highest since 5.44% on July 31. The six-month bill rate was the highest since a 5.46% average July 24. The new discount rates understate the actual return to investorsz:--5.59% for three-month bills, with a $10,000 bill selling for $9,863.00, and 5.67% for a six-month bill selling for $9,726.00. In a separate report, the Federal Reserve Board said that the average yield for one-year Treasury bills rose to 5.71% last week from 5.68% the previous week.