The Treasury sold $6.4 billion in new...

The Treasury sold $6.4 billion in new three-month bills at an average discount rate of 5.98%, up from 5.85% last week. Another $6.4 billion was sold in new six-month bills at an average discount rate of 6.37%, up from 6.33% last week. The rates were the highest since three-month bills sold for 6% on Dec. 14 and six-month bills averaged 6.48% on Dec. 21. The new discount rates understate the actual return to investors--6.17% for three-month bills, with a $10,000 bill selling for $9,848.80, and 6.69% for six-month bills selling for $9,678.00. The discount rate reflects the price discount received when government securities are purchased at less than face value. The weekly debt auction was held on Tuesday instead of Monday because of the Martin Luther King Jr. holiday.