Treasury Bill Rates Fall Again: The Treasury...

Treasury Bill Rates Fall Again: The Treasury sold $10.0 billion of new three-month bills at an average discount rate of 5.97%, down from 6.22% last week. Another $10.1 billion of new six-month bills was sold at an average discount rate of 5.94%, down from 6.28% last week. The three-month bill rate was the lowest since they sold for 5.92% on April 25, 1988. The six-month bill rate was the lowest since it averaged 5.78% on March 14, 1988. The discount rate reflects the price discount received when government securities are purchased at less than face value. The new discount rates understate the actual return to investors--6.15% for three-month bills, with a $10,000 bill selling for $9,849.10 and 6.21% for a six-month bill selling for $9,699.70.

T-Bill Auction 3-month: 5.97% 6-month: 5.94%