T-Bill Rates Rise: The Treasury sold $7.2...

T-Bill Rates Rise: The Treasury sold $7.2 billion of new three-month bills at an average discount rate of 8.01%, up from 7.94% last week. Another $7.2 billion of new six-month bills was sold at an average discount rate of 7.83%, up from 7.70% last week. The rates were the highest since three-month bills sold for 8.09% on July 24 and six-month bills averaged 8.08% on June 19. The new discount rates understate the actual return to investors--8.29% for three-month bills with a $10,000 bill selling for $9,797.50 and 8.26% for a six-month bill selling for $9,604.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.