Treasury Bill Rates Fall: The Treasury sold...

Treasury Bill Rates Fall: The Treasury sold $7.2 billion of new three-month bills at an average discount rate of 7.64%, down from 7.88% last week. Another $7.2 billion of new six-month bills was sold at an average discount rate of 7.64%, down from 7.87% last week. The rates were the lowest since three-month bills sold for 7.54% on Nov. 7, and six-month bills averaged 7.35% on July 31. The new discount rates understate the actual return to investors--7.9% for three-month bills, with a $10,000 bill selling for $9,806.90 and 8.06% for a six-month bill selling for $9,613.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.