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 7.63%, up from 7.61% last week. Another $8 billion of new six-month bills was sold at an average discount rate of 7.45%, up from 7.40% last week. The rates were the highest since Nov. 13, when three-month bills sold for 7.68% and six-month bills averaged 7.51%. 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 7.85% for a six-month bill selling for $9,623.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.
