T-Bill Rates Drop: The Treasury sold $6.8...

T-Bill Rates Drop: The Treasury sold $6.8 billion of new three-month bills at an average discount rate of 8.41%, down from 8.64% last week. Another $6.8 billion in new six-month bills was sold at an average discount rate of 8.39%, down from 8.64% last week. The rates were the lowest since Jan. 30, when three-month bills sold for 8.33% and six-month bills averaged 8.39%. The new discount rates understate the actual return to investors--8.71% for three-month bills, with a $10,000 bill selling for $9,787.40 and 8.88% for a six-month bill selling for $9,575.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.