The Treasury sold $6.4 billion in new...

The Treasury sold $6.4 billion in new three-month T-bills at an average discount rate of 5.73%, up from 5.63% last week. Another $6.4 billion was sold in six-month bills at an average discount rate of 6.03%, up from 5.85% last week. The rates were the highest since Feb. 1, when three-month bills sold for 5.74% and six-month bills averaged 6.11%. The new discount rates understate the actual return to investors--5.91% for three-month bills, with a $10,000 bill selling for $9,855.20, and 6.32% for six-month bills selling for $9,695.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.