The Treasury sold $7.2 billion of new...

The Treasury sold $7.2 billion of new three-month bills at an average discount rate of 8.05%, up from 7.97% last week. Another $7.2 billion of new six-month bills was sold at an average discount rate of 8.13%, up from 7.99% last week. The rates were the highest since three-month bills sold for 8.14% on April 8, 1985, and six-month bills averaged 8.27% on April 15, 1985. The new discount rates understate the actual return to investors--8.33% for three-month bills, with a $10,000 bill selling for $9,796.50, and 8.60% for six-month bills selling for $9,589.00. The discount rate reflects the price discount received when government securities are purchased at less than face value.