T-Bill Rates Rise: The Treasury sold $6.6...

T-Bill Rates Rise: The Treasury sold $6.6 billion of new three-month bills at an annual average discount rate of 7.87%, up from 7.76% last week. Another $6.6 billion of new six-month bills was sold at an average discount rate of 7.67%, up from 7.50% last week. The rates were the highest since three-month bills sold for 7.96% on July 3 and six-month bills averaged 7.78% on June 26. The discount rates understate the actual return to investors--8.14% for three-month bills, with a $10,000 bill selling for $9.801.10, and 8.09% for a six-month bill selling for $9,612.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.