Treasury Bill Rates Fall: The Treasury sold...
From Times Staff and Wire Reports
Treasury Bill Rates Fall: The Treasury sold $8 billion of new three-month bills at an average discount rate of 7.55%, down from 7.63% last week. Another $8 billion of new six-month bills was sold at an average discount rate of 7.30%, down from 7.45% last week. The rates were the lowest since three-month bills sold for 7.52% on Oct. 23, and six-month bills averaged 7.26% on Aug. 8, 1988. The new discount rates understate the actual return to investors--7.80% for three-month bills with a $10,000 bill selling for $9,809.20 and 7.69% for a six-month bill selling for $9,630.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.
