The Treasury sold $7.2 billion of new...

The Treasury sold $7.2 billion of new three-month bills at an average discount rate of 7.97%, up from 7.82% last week. Another $7.2 billion of new six-month bills was sold at an average discount rate of 7.99%, up from 7.87% last week. The rates were the highest since three-month bills sold for 8.04% on April 15, 1985, and six-month bills averaged 8.11% on April 29, 1985. The new discount rates understate the actual return to investors--8.24% for three-month bills, with a $10,000 bill selling for $9,800.80, and 8.44% for six-month bills selling for $9,598.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.