T-Bill Rates Fall: The Treasury sold $10.1 billion of new three-month bills at an average discount rate of 6.86%, down from 7.06% last week. Another $10 billion of new six-month bills was sold at an average discount rate of 6.74%, down from 6.96% last week. The rates were the lowest since three-month bills sold for 6.76% on July 18, 1988, and six-month bills averaged 6.71% on July 5, 1988. The new discount rates understate the actual return to investors--7.08% for three-month bills, with a $10,000 bill selling for $9,826.60, and 7.07% for a six-month bill selling for $9,659.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.