T-Bill Rates Sag: The Treasury sold $9.2...
From Times Staff and Wire Reports
T-Bill Rates Sag: The Treasury sold $9.2 billion of new three-month bills at an average discount rate of 7.39%, down from 7.49% last week. Another $9.2 billion of new six-month bills was sold at an average discount rate of 7.36%, down from 7.48% last week. The rates were the lowest since three-month bills sold for 7.23% on Aug. 6, and six-month bills averaged 7.31% on Aug. 13. The new discount rates understate the actual return to investors--7.64% for three-month bills with a $10,000 bill selling for $9,813.20 and 7.75% for a six-month bill selling for $9,627.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.
