The Treasury sold $7 billion of new...

The Treasury sold $7 billion of new three-month bills at an average discount rate of 7.17%, down from 7.21% last week. Another $7 billion of new six-month bills was sold at an average discount rate of 7.34%, down from 7.41% last week. The rates were the lowest since three-month bills sold for 7.05% on Aug. 15 and six-month bills averaged 7.26% on Aug. 8. The new discount rates understate the actual return to investors--7.40% for three-month bills with a $10,000 bill selling for $9,818.80 and and 7.73% for six-month bills selling for $9,628.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.