BRIEFLY

The Treasury sold $7.2 billion of new three-month bills at an average discount rate of 8.36%, up from 8.24% last week. Another $7.2 billion of new six-month bills was sold at an average discount rate of 8.48%, up from 8.37% last week. The rates were the highest since three-month bills sold at 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--8.66% for three-month bills, with a $10,000 bill selling for $9,788.70, and 8.98% for six-month bills selling for $9,571.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.