T-Bill Rates Higher at Auction: The Treasury...
From Times Staff and Wire Reports
T-Bill Rates Higher at Auction: The Treasury Department sold $11.88 billion in new three-month bills at an average discount rate of 2.97%, up from 2.94% last week. An additional $11.85 billion in new six-month bills was sold at an average discount rate of 3.22%, up from 3.10% last week. The rates were the highest since Aug. 31, when three-month bills sold for 3.17% and six-month bills averaged 3.26%. The new discount rates understate the actual return to investors--3.04% for three-month bills, with a $10,000 bill selling for $9,924.90, and 3.32% for a six-month bill selling for $9,837.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.
