Treasury Bill Rates Fall: The Treasury sold...

Treasury Bill Rates Fall: The Treasury sold $8.6 billion of new three-month bills at an average discount rate of 5.85%, down from 6.09% last week. Another $8.6 billion of new six-month bills was sold at an average discount rate of 5.91%, down from 6.06% last week. The three-month bill rate was the lowest since they sold for 5.78% on April 18, 1988. The six-month bill rate was the lowest since they averaged 5.85% on Feb. 11. The new discount rates understate the actual return to investors--6.04% for three-month bills, with a $10,000 bill selling for $9,852.10, and 6.19% for a six-month bill selling for $9,701.20 The discount rate reflects the price discount received when U.S. securities are purchased at less than face value.

T-Bill Auction 3-month: 5.85% 6-month: 5.91%