The Treasury sold $6.5 billion in new...

The Treasury sold $6.5 billion in new three-month bills at an average discount rate of 5.65%, down from 5.74% last week. An additional $6.4 billion was sold in new six-month bills at an average discount rate of 5.78%, down from 5.93% last week. The rates were the lowest since three-month bills sold for 5.62% on Feb. 29 and six-month bills averaged 5.54% on July 13, 1987. The new discount rates understate the actual return to investors--5.81% for three-month bills with a $10,000 bill selling for $9,857.20 and 6.04% for a six-month bill selling for $9,707.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.