T-Bill Rates Increase at Auction: The Treasury...
From Times Staff and Wire Reports
T-Bill Rates Increase at Auction: The Treasury sold $9.0 billion of new three-month bills at an average discount rate of 7.81%, up from 7.73% last week. Another $9.0 billion of new six-month bills was sold at an average discount rate of 7.75%, up from 7.60% last week. The rates were the highest since three-month bills sold for 7.91% on April 30, and six-month bills averaged 7.79% on May 21. The new discount rates understate the actual return to investors--8.08% for three-month bills, with a $10,000 bill selling for $9,802.60, and 8.18% for a six-month bill selling for $9,608.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.
