Short-Term Treasury Rates Fall

The Treasury Department sold $11 billion in three-month bills at an average discount rate of 4.90%, down from 4.91% last week. An additional $10.5 billion was sold in six-month bills at an average rate of 5.04%, down from 5.08%. The three-month bills’ rate was the lowest since they sold for 4.88% on June 16. The six-month bills’ rate was the lowest since it averaged 5.03% on Feb. 24. The new discount rates understate the actual return to investors: 5.03% for three-month bills, with a $10,000 bill selling for $9,874.80, and 5.24% for a six-month bill selling for $9,745.20. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills fell to 5.48% last week from 5.59% the previous week.