T-Bill Rates Higher at Auction: The Treasury...

T-Bill Rates Higher at Auction: The Treasury sold $8.6 billion of new three-month bills at an average discount rate of 7.73%, up from 7.69% last week. Another $8.6 billion of new six-month bills was sold at an average discount rate of 7.64%, up from 7.62% the week before. The new discount rates understate the actual return to investors: 7.99% for three-month bills, with a $10,000 bill selling for $9,804.60, and 8.06% for a six-month bill selling for $9,613.80. The discount rate reflects the discount received when government securities are purchased at less than face value. In a separate report, the Federal Reserve reported that the average yield for one-year T-bills fell to 8.08% last week from 8.18%.