T-Bill Rates Fall: The Treasury Department sold...

T-Bill Rates Fall: The Treasury Department sold $7.2 billion of new three-month bills at an average discount rate of 8.87%, down from 9.10% last week. Another $7.2 billion of new six-month bills was sold at an average discount rate of 8.84%, down from 9.12% last week. The rates were the lowest since March 13, when three-month bills sold for 8.69% and six-month bills averaged 8.76%. The new discount rates understate the actual return to investors--9.20% for three-month bills, with a $10,000 bill selling for $9,775.80, and 9.38% for six-month bills selling for $9,553.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.