T-Bill Rates Mixed at Auction: The Treasury...

T-Bill Rates Mixed at Auction: The Treasury sold $9.62 billion in new three-month bills at an average discount rate of 5.50%, unchanged from the past two weeks. Another $9.60 billion in new six-month bills was sold at an average discount rate of 5.66%, up from 5.63% last week. The three-month bill rate has not changed since May 6. The six-month bill rate was the highest since 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, and 5.92% for a six-month bill selling for $9,713.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 5.665 3-month: 5.50%