BANKING & FINANCE - Sept. 12, 1995

Rates Rise on Short-Term Treasury Securities: The Treasury Department sold $12.1 billion in three-month bills at an average discount rate of 5.34%, up from 5.30% last week. An additional $12.2 billion was sold in six-month bills at an average discount rate of 5.33%, also up from 5.30%. The three-month bill rate was the highest since they sold for 5.43% on Aug. 21. The six-month bill rate was the highest since they averaged 5.34% on Aug. 28. The new discount rates understate the actual return to investors--5.50% for three-month bills with a $10,000 bill selling for $9,865.00 and 5.57% for a six-month bill selling for $9,730.50.