Treasury Bill Interest Rates Rise: The Treasury...
From Times Staff and Wire Reports
Treasury Bill Interest Rates Rise: The Treasury sold $9.2 billion of new three-month bills at an average discount rate of 7.55%, up from 7.41% last week. Another $9.2 billion of new six-month bills was sold at an average discount rate of 7.45%, up from 7.31% last week. The rates were the highest since July 16, when three-month bills sold for 7.62% and six-month bills averaged 7.52%. The new discount rates understate the actual return to investors: 7.80% for three-month bills, with a $10,000 bill selling for $9,807.10, and 7.85% for a six-month bill selling for $9,623.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.
