The Treasury sold $7.2 billion of new...

The Treasury sold $7.2 billion of new three-month bills at an average discount rate of 8.33%, up from 8.26% last week. An additional $7.2 billion of new six-month bills was sold at an average discount rate of 8.39%, up from 8.31% last week. The new discount rates understate the actual return to investors--8.63% for three-month bills, with a $10,000 bill selling for $9,789.40, and 8.88% for a six-month bill selling for $9,575.80. The discount rate reflects the price discount received when government securities are purchased at less than face value. The Federal Reserve said the average yield for one-year T-bills, the most popular index for adjustable-rate mortgages, rose to 8.97% last week from 8.96% the previous week.