Short-Term Treasury Rates Fall

The Treasury Department sold $11.6 billion in three-month bills at an average discount rate of 5.01%, down from 5.07% last week. An additional $11.8 billion was sold in six-month bills at an average rate of 5.14%, down from 5.19%. The three-month bills’ rate was the lowest since they sold for 4.97% on July 7. The six-month bills’ rate was the lowest since it averaged 5.12% on Aug. 18. The new discount rates understate the actual return to investors: 5.14% for three-month bills, with a $10,000 Treasury bill selling for $9,873.40, and 5.35% for a six-month bill selling for $9,740.10. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills fell to 5.58% last week from 5.59% the previous week.