Short-Term T-Bill Rates Mixed: The Treasury Department...

Short-Term T-Bill Rates Mixed: The Treasury Department sold $10 billion in new three-month bills at an average discount rate of 7.06%, up from 7.02% last week. Another $10 billion in new six-month bills was sold at an average discount rate of 6.96%, unchanged from last week. The six-month bill rate was the lowest since it averaged 6.71% on July 5, 1988. The new discount rates understate the actual return to investors--7.29% for three-month bills, with a $10,000 bill selling for $9,821.50, and 7.31% for six-month bills, with a $10,000 bill selling for $9,648.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 3-month: 7.06% 6-month: 6.96%