Interest Rates Fall: The Treasury sold $8.0...
From Times Staff and Wire Reports
Interest Rates Fall: The Treasury sold $8.0 billion of new three-month bills at an average discount rate of 7.61%, down from 7.68% last week. Another $8.0 billion of new six-month bills was sold at an average discount rate of 7.40%, down from 7.51% last week. The rates were the lowest since three-month bills sold for 7.52% on Oct. 23 and six-month bills averaged 7.35% on July 31. The new discount rates understate the actual return to investors--7.86% for three-month bills with a $10,000 bill selling for $9,809.80 and 7.79% for a six-month bill selling for $9,627.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.
