T-Bill Rates Fall: The Treasury sold $8.6...
From Times Staff and Wire Reports
T-Bill Rates Fall: The Treasury sold $8.6 billion of new three-month bills at an average discount rate of 5.50%, down from 5.60% last week. Another $8.6 billion of new six-month bills was sold at an average discount rate of 5.61%, down from 5.68% last week. The three-month bill rate was the lowest since they sold for 5.49% on Nov. 30, 1987. The six-month bill rate was the lowest since they averaged 5.54% on July 13, 1987. The new discount rates understate the actual return to investors--5.67% for three-month bills, with a $10,000 bill selling for $9,861.00, and 5.87% for a six-month bill selling for $9,716.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.
