T-Bill Rates Rise: The Treasury sold $10...

T-Bill Rates Rise: The Treasury sold $10 billion of new three-month bills at an average discount rate of 5.59%, up from 5.46% last week. Another $10 billion of new six-month bills was sold at an average discount rate of 5.71%, up from 5.65% last week. The three-month bill rate was the highest since they sold for 5.60% on April 29. The six-month bill rate was the highest since they averaged 5.79% on April 22. The new discount rates understate the actual return to investors--5.76% for three-month bills, with a $10,000 bill selling for $9,858.70, and 5.98% for a six-month bill selling for $9,711.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 5.71%3-month: 5.59%