Short-Term T-Bill Rates Drop: The Treasury Department...

Short-Term T-Bill Rates Drop: The Treasury Department sold $7.6 billion of new three-month bills at an average discount rate of 7.37%, down from 7.63% last week. Another $7.6 billion of new six-month bills were sold at an average discount rate of 7.42%, down from 7.60% last week. The rates were the lowest since three-month bills sold for 7.36% on Oct. 17, 1988, and six-month bills averaged 7.35% last July 31. The new discount rates understate the actual return to investors--7.61% for three-month bills, with a $10,000 bill selling for $9,813.70, and 7.82% for a six-month bill selling for $9,624.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.