T-Bill Rates Rise: The Treasury sold $8...

T-Bill Rates Rise: The Treasury sold $8 billion of new three-month bills at an average discount rate of 7.60%, up from 7.55% last week. Another $8 billion of new six-month bills was sold at an average discount rate of 7.41%, up from 7.30% last week. The rates were the highest since Nov. 27 when three-month bills sold for 7.63% and six-month bills averaged 7.45%. The new discount rates understate the actual return to investors--7.86% for three-month bills with a $10,000 bill selling for $9,807.90 and 7.80% for a six-month bill selling for $9,625.40. The rate reflects the price discount received when securities are bought at less than face value.