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 7.96%, up from 7.85% last week. Another $8.1 billion of new six-month bills was sold at an average discount rate of 7.89%, up from 7.79% last week. The rates were the highest since three-month bills sold for 7.99% on Aug. 21, and six-month bills averaged 7.92% on Oct. 2. The new discount rates understate the actual return to investors--8.24% for three-month bills with a $10,000 bill selling for $9,798.80 and 8.33% for a six-month bill selling for $9,601.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.