The Treasury sold $6.8 billion of new...

The Treasury sold $6.8 billion of new three-month bills at an average discount rate of 6.94%, up from 6.89% last week. Another $6.8 billion of new six-month bills was sold at an average discount rate of 7.26%, up from 7.15% last week. The rates were the highest since Oct. 13, when three-month bills sold for 6.96% and six-month bills averaged 7.34%. The new discount rates understate the actual return to investors--7.16% for three-month bills, with a $10,000 bill selling for $9,824.60 and 7.64% for a six-month bill selling for $9,633.00. The discount rate reflects the price discount received when the securities are purchased at less than face value.