T-Bill Rates Fall: The Treasury sold $8...
From Times Staff and Wire Reports
T-Bill Rates Fall: The Treasury sold $8 billion of new 13-week bills at an average discount of 7.85%, down from 7.97% at last week’s auction and the lowest since Feb. 26, when the auction yielded 7.72%. The Treasury also sold $8 billion of new 26-week bills at an average discount of 7.83%, down from 7.92% last week and the lowest rate since March 5, when the rate stood at 7.79%. 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 8.26% for a six-month bill selling for $9,604.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.
