ECONOMY

T-Bill Rates Fall Again: The Treasury sold $10.8 billion of new three-month bills at an average discount rate of 5.04%, down from 5.11% last week. Another $10.9 billion of new six-month bills was sold at an average discount rate of 5.08%, down from 5.14% last week. The three-month bill rate was the lowest since they sold for 4.97% on June 27, 1977. The six-month bill rate was the lowest since they averaged 5.05% on May 2, 1977. The new discount rates understate the actual return to investors: 5.19% for three-month bills, with a $10,000 bill selling for $9,872.60, and 5.30% for a six-month bill selling for $9,743.20. The discount rate reflects the price discount received when securities are purchased at less than face value.

T-Bill Auction 6-month: 5.08% 3-month: 5.04%