THE ECONOMY

Treasury Bill Rates Rise: The Treasury sold $10.4 billion in new three-month bills at an average discount rate of 5.60%, up from 5.56% last week. Another $10.4 billion in new six-month bills was sold at an average discount rate of 5.72%, up from 5.70% last week. The three-month bill rate was the highest since they sold for 5.61% June 17. The six-month bill rate was the highest since they averaged 5.76% on June 24. The new discount rates understate the actual return to investors--5.78% for three-month bills, with a $10,000 bill selling for $9,858.40, and 5.99% for a six-month bill selling for $9,710.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 5.72% 3-month: 5.60%