T-Bill Rates Drop: The Treasury sold $9...
From Times Staff and Wire Reports
T-Bill Rates Drop: The Treasury sold $9 billion of new three-month bills at an average discount rate of 7.49%, down from 7.62% last week. Another $9 billion of new six-month bills were sold at an average discount rate of 7.40%, down from 7.52% last week. The rates were the lowest since three-month bills sold for 7.37% on Oct. 16, 1989, and six-month bills averaged 7.30% on Dec. 4, 1989. The new discount rates understate the actual return to investors--7.74% for three-month bills, with a $10,000 bill selling for $9,810.70, and 7.79% for a six-month bill selling for $9,625.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.
