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 8.04%, down from 8.05% last week. Another $7.2 billion of new six-month bills was sold at an average discount rate of 8.25%, up from 8.13% last week. The rates for six-month bills were the highest since April 15, 1985, when they averaged 8.27%. The rates for three-month bills were the lowest since they averaged 7.97% on Nov. 21. The new discount rates understate the actual return to investors--8.32% for three-month bills, with a $10,000 bill selling for $9,796.80, and 8.73% for six-month bills selling for $9,582.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.