T-Bill Rates Fall: The Treasury sold $7.2...

T-Bill Rates Fall: The Treasury sold $7.2 billion worth of new three-month bills at an average discount rate of 8.57%, down from 8.71% last week. Another $7.2 billion in new six-month bills was sold at an average discount rate of 8.59%, down from 8.78% last week. The rates were the lowest since Feb. 21, when three-month bills sold for 8.51% and six-month bills averaged 8.50%. The new discount rates understate the actual return to investors--8.88% for three-month bills with a $10,000 bill selling for $9,783.40 and and 9.11% for six-month bills selling for $9,565.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.