T-Bill Rates Inch Up: The Treasury sold...

T-Bill Rates Inch Up: The Treasury sold $8.4 billion of new three-month bills at an average discount rate of 7.74%, up from 7.67% last week. Another $8.4 billion of new six-month bills was sold at an average discount rate of 7.79%, up from 7.68% last week. The new discount rates understate the actual return to investors--8.00% for three-month bills, with a $10,000 bill selling for $9,804.40 and 8.22% for a six-month bill selling for $9,604.00. The discount rate reflects the price discount received when government securities are purchased at less than face value. In a separate report, the Federal Reserve said the average yield for one-year T-bills, the most popular index for making changes in adjustable rate mortgages, fell to 8.24% last week, down from 8.36% the previous week.