Short-Term T-Bill Rates Fall

The Treasury Department sold $12.1 billion in three-month bills at an average discount rate of 5.06%, down from 5.10% last week. An additional $12.1 billion was sold in six-month bills at an average rate of 5.18%, down from 5.19%. The rates were the lowest since Feb. 24, when three-month bills sold for 5.01% and six-month rates averaged 5.03%. The new discount rates understate the actual return to investors--5.20% for three-month bills, with a $10,000 bill selling for $9,872.10, and 5.39% for a six-month bill selling for $9,738.10. In a separate report, the Federal Reserve Board said that the average yield for one-year Treasury bills rose to 5.70% last week from 5.60%.