Short-Term Treasury Rates Fall: Interest rates on...

Short-Term Treasury Rates Fall: Interest rates on short-term Treasury securities fell in auction to the lowest level this year. The Treasury Department sold $6.6 billion in three-month bills at an average discount rate of 8.21%, down from 8.41% last week. Another $6.6 billion was sold in six-month bills at an average discount rate of 8.19%, down from 8.39% last week. The rates were the lowest since three-month bills sold for 8.14% on Dec. 19 and six-month bills averaged 8.13% on Nov. 28. The new discount rates understate the actual return to investors--8.50% for three-month bills, with a $10,000 bill selling for $9,792.50, and 8.66% for a six-month bill selling for $9,586. The average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 9.05% last week from 9.16% the previous week.