T-Bill Rates Drop: The Treasury sold $6.4...

T-Bill Rates Drop: The Treasury sold $6.4 billion of new three-month bills at an average discount rate of 8.17%, down from 8.50% last week. Another $6.4 billion of new six-month bills was sold at an average discount rate of 7.99%, down from 8.36% last week. The rates were the lowest since three-month bills sold for 8.14% on Dec. 19 and six-month bills averaged 7.87% on Nov. 14. The new discount rates understate the actual return to investors--8.46% for three-month bills, with a $10,000 bill selling for $9,793.50 and 8.44% for a six-month bill selling for $9,596.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.