Rates for Short-Term Treasury Bills Fall
Times Staff and Wire Reports
The Treasury Department sold $14 billion in three-month bills at an average discount rate of 5.02%, down from 5.04% last week. An additional $14.1 billion was sold in six-month bills at an average rate of 5.07%, down from 5.08%. The three-month bill rate was the lowest since they sold for 5.01% on Oct. 21. The six-month bill rate was the lowest since they averaged 5.02% on April 22. The new discount rates understate the actual return to investors: 5.16% for three-month bills, with a $10,000 bill selling for $9,873.10, and 5.28% for a six-month bill selling for $9,743.70. Meanwhile, the average yield for one-year T-bills fell to 5.44% last week from 5.48%. The next auction of two-year notes is Nov. 19, and Nov. 20 for five-year notes.
