Treasury Bill Rates Rise: The Treasury sold...

Treasury Bill Rates Rise: The Treasury sold $6.6 billion of new three-month bills at an average discount rate of 8.32%, up from 8.21% last week. Another $6.6 billion of new six-month bills was sold at an average discount rate of 8.33%, up from 8.19%. The rates for both were the highest since May 8. The new discount rates understate the actual return to investors--8.62% for three-month bills, with a $10,000 bill selling for $9,789.70, and 8.82% for a six-month bill selling for $9,576.60. The discount rate reflects the price discount received when government securities are purchased at less than face value.