The Treasury sold $6.4 billion in new...

The Treasury sold $6.4 billion in new three-month bills at an average discount rate of 5.69%, down from 5.76% last week. Another $6.4 billion was sold in new six-month bills at an average discount rate of 6.0%, up from 5.96% last week. The new discount rates understate the actual return to investors--5.85% for three-month bills with a $10,000 bill selling for $9,856.20 and 6.27% for a six-month bill selling for $9,696.70. 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 one-year T-bills, the most popular index for making changes in adjustable rate mortgages, rose to 6.77% last week from 6.63% the previous week.