The Treasury sold $7 billion of new...

The Treasury sold $7 billion of new three-month T-bills at an average discount rate of 7.26%, the same as last week. Another $7 billion of new six-month bills was sold at an average discount rate of 7.4%, down from 7.5% last week. The new discount rates understate the actual return to investors--7.5% for three-month bills, with a $10,000 bill selling for $9,816.50 and 7.79% for six-month bills selling at $9,625.90. The discount rate reflects the price discount received when government securities are purchased at less than face value. In a separate report, the Federal Reserve said the average yield for one-year T-bills, the most popular index for making changes in adjustable-rate home mortgages, fell to 8.24% last week after averaging 8.28% the week before.