Treasury Bill Rates Rise: The Treasury sold...

Treasury Bill Rates Rise: The Treasury sold $8.7 billion of new three-month bills at an average discount rate of 6.09%, up from 6.01% last week. Another $8.6 billion of new six-month bills was sold at an average discount rate of 6.06%, also up from 6.01% last week. The new discount rates understate the actual return to investors--6.29% for three-month bills, with a $10,000 bill selling for $9,846.10 and 6.36% for a six-month bill selling for $9,693.60. The discount rate reflects the price discount received when government securities are purchased at less than face value.