The Treasury sold $6.4 billion in new...

The Treasury sold $6.4 billion in new three-month bills at an average discount rate of 6.13%, up from 5.92% last week. Another $6.4 billion was sold in new six-month bills at an average discount rate of 6.41%, up from last week’s 6.28%. The rates were the highest since three-month bills averaged 6.84% on Oct. 19, the day of the stock market collapse, and six-month bills averaged 6.48% on Dec. 21. The new discount rates understate the actual return to investors--6.31% for three-month bills, with a $10,000 bill selling for $9,845.00, and 6.72% for a six-month bill selling for $9,675.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.