Treasury Bill Rates Advance: The Treasury sold...

Treasury Bill Rates Advance: The Treasury sold $7.4 billion of new three-month bills at an average discount rate of 7.83%, up from 7.72% last week. Another $7.4 billion of new six-month bills was sold at an average discount rate of 7.92%, up from 7.79% last week. The new discount rates understate the actual return to investors--8.10% for three-month bills with a $10,000 bill selling for $9,802.10 and 8.36% for a six-month bill selling for $9,599.60. The discount rate reflects the price discount received when government securities are purchased at less than face value.