T-Bill Rates Drop Again: The Treasury sold...

T-Bill Rates Drop Again: The Treasury sold $7.2 billion of new three-month bills at an average discount rate of 8.71%, down from 8.87% last week. Another $7.2 billion of new six-month bills was sold at an average discount rate of 8.78%, down from 8.84% 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--9.03% for three-month bills with a $10,000 bill selling for $9,779.80 and 9.32% for six-month bills selling for $9,556.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.