T-Bill Rates Retreat: The Treasury sold $7.4...

T-Bill Rates Retreat: The Treasury sold $7.4 billion of new three-month bills at an average discount rate of 7.63%, down from 7.83% last week. Another $7.4 billion of new six-month bills was sold at an average discount rate of 7.60%, down from 7.92% last week. The rates were the lowest since three-month bills sold for 7.54% on Nov. 7, 1988, and six-month bills averaged 7.35% last July 31. The new discount rates understate the actual return to investors--7.89% for three-month bills, with a $10,000 bill selling for $9,807.10, and 8.01% for a six-month bill selling for $9,615.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.