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

T-Bill Rates Retreat: The Treasury sold $6.4 billion of new three-month bills at an average discount rate of 8.13%, down from 8.17% last week. Another $6.4 billion of new six-month bills was sold at an average discount rate of 7.79%, down from 7.99% last week. The rates were the lowest since three-month bills sold for 7.98% on Dec. 12 and six-month bills averaged 7.71% on Nov. 7. The new discount rates understate the actual return to investors--8.42% for three-month bills, with a $10,000 bill selling for $9,794.50, and 8.22% for a six-month bill selling for $9,606.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.