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

Short-Term T-Bill Rates Rise: The Treasury Department sold $7.8 billion of new three-month bills at an average discount rate of 7.52%, up from 7.37% last week. Another $7.8 billion of new six-month bills was sold at an average discount rate of 7.50%, up from 7.42% last week. The rates were the highest since Oct. 10, when three-month bills sold for 7.63% and six-month bills averaged 7.60%. The new discount rates understate the actual return to investors--7.77% for three-month bills with a $10,000 bill selling for $9,809.90 and 7.90% for a six-month bill selling for $9,620.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.