T-Bill Rates Rise: The Treasury sold $8.6...

T-Bill Rates Rise: The Treasury sold $8.6 billion of new three-month bills at an average discount rate of 7.78%, up from 7.74% last week. Another $8.6 billion of new six-month bills was sold at an average discount rate of 7.67%, up from 7.64% last week. The rates were the highest since May 29, when three-month bills sold for 7.80% and six-month bills averaged 7.74%. The new discount rates understate the actual return to investors--8.05% for three-month bills with a $10,000 bill selling for $9,803.30 and 8.09% for a six-month bill selling for $9,612.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.