BANKING & FINANCE - April 23, 1996

Rates on Short-Term T-Bills Mixed: The Treasury Department sold $11.5 billion in three-month bills at an average discount rate of 4.97%, up from 4.87% last week. Another $11.7 billion was sold in six-month bills at an average discount rate of 5.02%, down from 5.03%. The three-month bill rate was the highest since they sold for 5.03% on April 8. The six-month bill rate was the lowest since they averaged 4.97% on March 25. The new discount rates understate the actual return to investors: 5.10% for three-month bills, with a $10,000 bill selling for $9,874.40, and 5.22% for a six-month bill selling for $9,746.20. In a separate report, the Federal Reserve Board said the average yield for one-year T-bills fell to 5.51% last week from 5.62% the previous week. The next auction of two- and five-year notes will be April 23 and 24, respectively.