The Treasury sold $6.4 billion of new...

The Treasury sold $6.4 billion of new three-month bills at an average discount rate of 6.44%, down from 6.53% last week. Another $6.4 billion of new six-month bills was sold at an average discount rate of 6.72%, down from 6.83% last week. The new discount rates understate the actual return to investors--6.64% for three-month bills, with a $10,000 bill selling for $9,837.20, and 7.05% for a six-month bill selling for $9,660.30. The discount rate reflects the price discount received when government securities are purchased at less than face value. In a separate report, the Federal Reserve said the average yield for a one-year T-bill, the most popular index for making changes in adjustable-rate mortgages rose to 7.59% last week from 7.58% the week before.