The Treasury sold $6.6 billion in new...

The Treasury sold $6.6 billion in new three-month bills at an average discount rate of 6.45%, up from 6.19% last week. Another $6.6 billion was sold in new six-month bills at an average discount rate of 6.72%, up from 6.34% last week. The new T-bill rates were the highest since three-month bills sold for 6.52% on March 17, 1986, and six-month bills averaged 6.87% on March 3, 1986. The new discount rates understate the actual return to investors--6.66% for three-month bills, with a $10,000 bill selling for $9,837, and 7.07% for six-month bills selling for $9,660.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.