Treasury-Bill Rates Fall: The Treasury sold $9.2...
From Times Staff and Wire Reports
Treasury-Bill Rates Fall: The Treasury sold $9.2 billion of new three-month bills at an average discount rate of 7.39%, down from 7.41% last week. Another $9.2 billion of new six-month bills was sold at an average discount rate of 7.30%, down from 7.34% last week. The rates were the lowest since Aug. 6, when three-month bills sold for 7.23% and six-month bills averaged 7.19%. 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 7.69% for a six-month bill selling for $9,630.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.
