T-Bill Rates Advance: The Treasury sold $8...
From Times Staff and Wire Reports
T-Bill Rates Advance: The Treasury sold $8 billion of new three-month bills at an average discount rate of 7.85%, up from 7.72% last week. Another $8 billion of new six-month bills was sold at an average discount rate of 7.79%, up from 7.70% last week. The rates were the highest since three-month bills sold for 7.88% on Sept. 5, and six-month bills averaged 7.92% on Oct. 2. The new discount rates understate the actual return to investors--8.12% for three-month bills with a $10,000 bill selling for $9,801.60 and 8.22% for a six-month bill selling for $9,606.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.
