T-Bill Rates Drop: The Treasury Department sold...
From Times Staff and Wire Service Reports
T-Bill Rates Drop: The Treasury Department sold $7.8 billion in new three-month bills at an average discount rate of 7.57%, down from 7.64% last week, and another $7.8 billion of new six-month bills at an average discount rate of 7.44%, down from 7.52% last week. The rates were the lowest since three-month bills sold for 7.55% on Dec. 4, 1989, and six-month bills averaged 7.43% on Dec. 18, 1989. The new discount rates understate the actual return to investors--7.83% for three-month bills, with a $10,000 bill selling for $9,808.60 and 7.84% for a six-month bill selling for $9,623.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.
