BANKING & FINANCE
Treasury Bill Yields at 4-Year Highs: The Treasury Department sold $13.5 billion of new three-month bills at an average discount rate of 5.87%, up from 5.78% last week. Another $13.6 billion of new six-month bills were sold at an average discount rate of 6.42%, up from 6.37%. The three-month bill rate was the highest since they sold for 6.09% on March 4, 1991. The six-month bill rate was the highest since they averaged 6.51% on Jan. 7, 1991. The new discount rates understate the actual return to investors: 6.04% for three-month bills, with a $10,000 bill selling for $9,851.60, and 6.73% for a six-month bill selling for $9,675.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.