Rates on Short-Term T-Bills Fall

The Treasury Department sold $12.5 billion in three-month bills at an average discount rate of 5%, down from 5.06% last week. Another $12.5 billion was sold in six-month bills at an average rate of 5.08%, down from 5.12%. The three-month rate is the lowest since the bills sold for 4.92% on Dec. 23. The six-month rate is the lowest since they averaged 4.99% on Dec. 16. The new discount rates understate the actual return to investors: 5.13% for three-month bills, with a $10,000 bill selling for $9,873.60, and 5.29% for a six-month bill selling for $9,743.20. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills rose to 5.62% last week from 5.61% the previous week.