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 their lowest level in two weeks. The Treasury sold $8 billion of new three-month bills at an average discount rate of 7.72%, down from 7.80% last week. Another $8 billion of new six-month bills was sold at an average discount rate of 7.70%, down from 7.77% last week. The new discount rates understate the actual return to investors--7.98% for three-month bills, with a $10,000 bill selling for $9,804.90, and 8.12% for a six-month bill selling for $9,610.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.