Treasury Bills Rates Fall: The Treasury sold...

Treasury Bills Rates Fall: The Treasury sold $10 billion of new three-month bills at an average discount rate of 7.02%, down from 7.08% last week. Another $10.1 billion of new six-month bills was sold at an average discount rate of 6.96%, down from 7.05% last week. The rates were the lowest since three-month bills sold for 6.94% on Aug. 8, 1988, and six-month bills averaged 6.71% on July 5, 1988. The new discount rates understate the actual return to investors--7.24% for three-month bills, with a $10,000 bill selling for $9,822.60, and 7.31% for a six-month bill selling for $9,648.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 3-month: 7.02% 6-month: 6.96%