THE ECONOMY

T-Bill Edge Up: The Treasury sold $10.0 billion of new three-month bills at an average discount rate of 5.61%, up from 5.60% last week. Another $10 billion of new six-month bills at an average discount rate of 5.79%, up from 5.78% last week. The three-month bill rate was the highest since they sold for 5.69% on April 22, 1991. The six-month bill rate was the highest since they averaged 5.84% on March 25, 1991. The new discount rates understate the actual return to investors: 5.79% for three-month bills, with a $10,000 bill selling for $9,858.20 and 6.06% for a six-month bill selling for $9,707.30. The discount rate reflects the price discount received when the securities are purchased at less than face value.

T-Bills Auction 6-month: 5.79% 3-month: 5.61%