Treasury Bill Rates Rise: The Treasury Department...

Treasury Bill Rates Rise: The Treasury Department sold $7.2 billion of new three-month bills at an average discount rate of 8.66%, up from 8.57% last week. Another $7.2 billion of new six-month bills was sold at an average discount rate of 8.72%, up from 8.59% last week. The rates were the highest since April 10, when three-month bills sold for 8.71% and six-month bills averaged 8.78%. The new discount rates understate the actual return to investors--8.98% for three-month bills with a $10,000 bill selling for $9,781.10 and 9.25% for a six-month bill selling for $9,559.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.