Treasury Bill Rates Mixed: The Treasury sold...
From Times Staff and Wire Reports
Treasury Bill Rates Mixed: The Treasury sold $9.22 billion of new three-month bills at an average discount rate of 5.50%, unchanged from last week. Another $9.23 billion of new six-month bills sold at an average discount rate of 5.63%, up from 5.61% last week. The three-month bill rate is the lowest since they sold for 5.49% on Nov. 30, 1987. The six-month bill rate is the highest since they averaged 5.68% on April 29. 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 5.89% for a six-month bill selling for $9,715.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.
