T-Bill Rates Rise: The U.S. Treasury sold...

T-Bill Rates Rise: The U.S. Treasury sold $6.6 billion of new three-month bills at an average annual discount rate of 8.09%, up from 7.87% last week. Another $6.6 billion of new six-month bills was sold at an average discount rate of 7.73%, up from 7.67% last week. The rates were the highest since three-month bills sold for 8.22% on June 19 and six-month bills averaged 7.78% on June 26. The new discount rates understate the actual return to investors--8.37% for three-month bills, with a $10,000 bill selling for $9.795.50, and 8.16% for a six-month bill selling for $9,609.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.