T-Bill Rates Retreat: The Treasury Department sold...
From Times staff and Wire reports
T-Bill Rates Retreat: The Treasury Department sold $9.8 billion of new three-month bills at an average discount rate of 7.07%, down from 7.12% last week. Another $9.8 billion of new six-month bills was sold at an average discount rate of 7.05%, down from 7.13% last week. The rates were the lowest since three-month bills sold for 7.05% on Aug. 15, 1988, and six-month bills averaged 6.99% on July 11, 1988. The new discount rates understate the actual return to investors--7.30% for three-month bills with a $10,000 bill selling for $9,812.30 and 7.41% for a six-month bill selling for $9,643.60. The discount rate reflects the price discount received when government securities are purchased at less than face value.
