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BRIEFLY

Interest rates on short-term T-bills rebounded.

September 09, 1986

The Treasury Department sold $7.82 billion in new three-month bills at an average discount rate of 5.24%, up from 5.12% last week. Another $7.81 billion was sold new in six-month bills at an average discount rate of 5.35%, up from 5.17% last week. The rates were the highest since three-month bills sold for 5.32% on Aug. 25 and six-month bills averaged 5.65% on Aug. 18. The new discount rates understate the actual return to investors--5.39% for a $10,000 three-month bill selling for $9,867.50 and 5.58% for a six-month bill selling for $9,729.50. The discount rate reflects the price discount received when government securities are purchased at less than face value.

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