T-Bill Rates Remain Flat: Interest rates on...

T-Bill Rates Remain Flat: Interest rates on short-term Treasury securities were unchanged to lower in the latest auction. The Treasury Department sold $10.02 billion in three-month bills at an average discount rate of 6.52%, the same as in the previous auction Dec. 21. Another $10.04 billion was sold in six-month bills at an average discount rate of 6.48%, down from 6.57% on Dec. 21. The new discount rates understate the actual return to investors--6.72% for three-month bills, with a $10,000 bill selling for $9,835.20, and 6.79% for a six-month bill selling for $9,670.60. The Fed also said the average yield for one-year bills, the most popular index for making changes in adjustable-rate mortgages, fell to 6.95% last week from 6.96% the previous week.