Treasury Bills Mixed: The Treasury Department said...

Treasury Bills Mixed: The Treasury Department said it sold $8.6 billion of three-month bills at an average discount rate of 7.20%, up from 7.18% last week. Another $8.6 billion of six-month bills were sold at an average discount rate of 7.16%, down from 7.22% last week. The new discount rates understate the actual return to investors--7.44% for three-month bills with a $10,000 bill selling for $9,818.00 and 7.53% for a six-month bill selling for $9,638.00. The discount rate reflects the price discount received when government securities are purchased at less than face value. The auction had had been postponed because of congressional failure to raise the debt limit, but were rescheduled shortly after President Bush signed legislation raising the debt limit to $3.195 trillion through Saturday.