The Treasury sold $7.0 billion of new...

The Treasury sold $7.0 billion of new three-month bills at an average discount rate of 7.45%, up from 7.36% last week. Another $7.0 billion of new six-month bills was sold at an average discount rate of 7.54%, down from 7.55% last week. The three-month rate was the highest since the bills sold for 7.69% on May 13, 1985. The six-month rate was the lowest since the bills averaged 7.46% on Oct. 11. The new discount rates understate the actual return to investors: 7.70% for three-month bills, with a $10,000 bill selling for $9,811.70 and 7.95% for six-month bills selling for $9,618.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.