The Treasury sold $7 billion of new...

The Treasury sold $7 billion of new three-month bills at an average discount rate of 7.23%, up from 7.17% last week. Another $7 billion of new six-month bills was sold at an average discount rate of 7.48%, up from 7.34% last week. The rates were the highest since three-month bills sold for 7.26% on Sept. 6 and six-month bills averaged 7.50% on Aug. 29. The new discount rates understate the actual return to investors--7.47% for three-month bills, with a $10,000 bill selling for $9,817.20, and 7.88% for six-month bills selling for $9,621.80. The discount rate reflects the price discount received when securities are purchased at less than face value.