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 5.74%, up from 5.62% last week. Another $6.4 billion was sold in new six-month bills at an average discount rate of 5.93%, up from 5.86% last week. The rates for three-month bills were the highest since Feb. 1 when they sold for an identical 5.74%. The rates for six-month bills were the highest since Feb. 16 when they averaged 6.03%. The new discount rates understate the actual return to investors--5.91% for three-month bills with a $10,000 bill selling for $9,854.90 and 6.20% for a six-month bill selling for $9,700.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.