T-Bill Rates Rise: The Treasury sold $8...
From Times Staff and Wire Reports
T-Bill Rates Rise: The Treasury sold $8 billion of new three-month bills at an average discount rate of 7.68%, up from 7.67% last week. Another $8 billion of new six-month bills was sold at an average discount rate of 7.51%, up from 7.49% last week. The new discount rates understate the actual return to investors--7.94% for three-month bills, with a $10,000 bill selling for $9,805.90, and 7.92% for a six-month bill selling for $9,620.30. The discount rate reflects the price discount received when government securities are purchased at less than face value. In a separate report, the Fed said the average yield for one-year Treasury bills, fell to 7.87% last week, down from 7.89% the previous week.
