T-Bill Rates Fall: The Treasury Department sold...

T-Bill Rates Fall: The Treasury Department sold $7.2 billion of new three-month bills at an average discount rate of 7.88%, down from 7.94% last week. Another $7.2 billion of new six-month bills was sold at an average discount rate of 7.87%, down from 7.88% last week. The new discount rates understate the actual return to investors--8.15% for three-month bills, with a $10,000 bill selling for $9,800.80, and 8.31% for a six-month bill selling for $9,602.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.