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

T-Bill Rates Advance: The Treasury sold $6.4 billion of new three-month bills at an average discount rate of 8.22%, up from 8.13% last week. Another $6.4 billion of new six-month bills was sold at an average discount rate of 8.08%, up from 7.79% from last week. The rates were the highest since May 30, when three-month bills sold for 8.5% and six-month bills averaged 8.36%. The new discount rates understate the actual return to investors--8.51% for three-month bills with a $10,000 bill selling for $9,792.20, and 8.54% for a six-month bill selling for $9,591.50. The discount rate reflects the price discount received when the securities are purchased at less than face value.