T-Bill Rates Fall: Interest rates on short-term...

T-Bill Rates Fall: Interest rates on short-term Treasury securities fell in Monday’s auction to the lowest levels since last fall. The Treasury Department sold $6.4 billion in three-month bills at an average discount rate of 7.65%, down from 8.09% last week. Another $6.4 billion was sold in six-month bills at an average discount rate of 7.35%, down from 7.73% last week. The rates were the lowest since three-month bills sold for 7.54% last Nov. 7 and six-month bills averaged 7.34 % on Sept. 19, 1988. The discount rates understate the actual return to investors--7.91% for three-month bills with a $10,000 bill selling for $9,806.60 and 7.74% for a six-month bill selling for $9,628.40.