T-Bill Interest Rates Fall: The Treasury sold...
From Times Staff and Wire Reports
T-Bill Interest Rates Fall: The Treasury sold $9 billion of new three-month bills at an average discount rate of 7.62%, down from 7.81% last week. Another $9 billion of new six-month bills was sold at an average discount rate of 7.52%, down from 7.75% last week. The rates were the lowest since three-month bills sold for 7.57% and six-month bills averaged 7.44% Jan. 8. The new discount rates understate the actual return to investors--7.88% for three-month bills, with a $10,000 bill selling for $9,807.40, and 7.93% for a six-month bill selling for $9,619.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.
