T-Bill Rates at Lowest Level in 3...

T-Bill Rates at Lowest Level in 3 Years: The Treasury sold $7.12 billion of new three-month bills at an average discount rate of 5.57%, down from 5.60% last week. An additional $7.20 billion of new six-month bills were sold at an average discount rate of 5.67%, down from 5.68% last week. The three-month bill rate was the lowest since bills averaged 5.49% on Nov. 30, 1987. The six-month bill rate was the lowest since a 5.54% rate July 13, 1987. The new discount rates understate the actual return to investors--5.74% for three-month bills, with a $10,000 bill selling for $9,859,20, and 5.93% for a six-month bill selling for $9,713.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.