T-Bill Rates Down Again: The Treasury Department...
From Times staff and Wire reports
T-Bill Rates Down Again: The Treasury Department sold $9.8 billion of new three-month bills at an average discount rate of 7.12%, down from 7.20% last week. Another $9.8 billion of new six-month bills was sold at an average discount rate of 7.13%, down from 7.16%. The rates were the lowest since three-month bills sold for 7.05% on Aug. 15, 1988, and six-month bills averaged 7.09% on July 25, 1988. The new discount rates understate the actual return to investors--7.35% for three-month bills, with a $10,000 bill selling for $9,820.00, and 7.50% for a six-month bill selling for $9,639.50. The discount rate reflects the price discount received when government securities are purchased at less than face value.
