The Treasury sold $7 billion of new...

The Treasury sold $7 billion of new three-month bills at an average discount rate of 7.21%, down from 7.26% last week. Another $7 billion of new six-month bills was sold at an average discount rate of 7.41%, up from 7.40% last week. The rates on three-month bills were were the lowest since the bills sold for 7.18% on Aug. 22. The six-month rates were the highest since the bills averaged 7.50% on Aug. 29. The new discount rates understate the actual return to investors--7.45% for three-month bills, with a $10,000 bill selling for $9,817.70, and 7.80% for six-month bills selling for $9,625.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.