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%, the same rate as last week. Another $7 billion of new six-month bills was sold at an average discount rate of 7.46%, down from 7.48% last week. The rates on six-month bills were the lowest since they sold for 7.34% on Sept. 19. 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 7.86% for six-month bills selling for $9,622.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.