The Treasury Department sold $6.4 billion of...

The Treasury Department sold $6.4 billion of new three-month bills at an average discount rate of 5.92%, up from 5.78% last week. Another $6.4 billion was sold of new six-month bills at an average discount rate of 6.28%, up from 6.14% last week. The new discount rates understate the actual return to investors--6.09% for three-month bills with a $10,000 bill selling for $9,850.40 and 6.58% for a six-month bill selling for $9,682.50. The discount rate reflects the price discount received when government securities are purchased at less than face value. At the same time, the Federal Reserve said the average yield for one-year T-bills rose to 7.03% last week from 6.92% the week before.