Treasury Bill Rates Fall: The Treasury sold...
From Times Staff and Wire Reports
Treasury Bill Rates Fall: The Treasury sold $9.2 billion of three-month bills at an average discount rate of 7.18%, down from 7.32% last week. Another $9.2 billion of new six-month bills was sold at an average discount rate of 7.21%, down from 7.33% last week. The rates were the lowest since three-month bills sold for 7.17% on Sept. 19, 1988, and six-month bills averaged 7.19% on Aug. 6, 1990. The new discount rates understate the actual return to investors--7.41% for three-month bills, with a $10,000 bill selling for $9,818.50, and 7.59% for a six-month bill selling for $9,635.50. The discount rate reflects the price discount received when government securities are purchased at less than face value.
