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 8.22%, up from 8.14% last week. Another $7.2 billion of new six-month bills was sold at an average discount rate of 8.33%, up from 8.29% last week. The rates were the highest since three-month bills sold for 8.41% on March 25, 1985, and six-month bills averaged 8.56% on April 8, 1985. The new discount rates understate the actual return to investors--8.51% for three-month bills, with a $10,000 bill selling for $9,792.20, and 8.82% for six-month bills selling for $9,578.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.