The Treasury sold $6.4 billion of new...

The Treasury sold $6.4 billion of new three-month bills at an average discount rate of 6.44%, identical to last week. Another $6.4 billion of new six-month bills was sold at an average discount rate of 6.67%, down from 6.72% last week. The rate on three-month bills this week and last was the lowest since these bills sold for 6.53% on May 3. The rate on six-month bills was the lowest since May 16, when they averaged 6.5%. The new discount rates understate the actual return to investors--6.64% for three-month bills, with a $10,000 bill selling for $9,837.20, and 7% for a six-month bill selling for $9,662.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.