Treasury Bill Rates Decline

The Treasury Department sold $5.75 billion in three-month bills at an average discount rate of 4.99%, down from 5.04% last week. An additional $7.26 billion in six-month bills sold at an average rate of 5.06%, down from 5.13%. The rates were the lowest since April 6, when three-month bills sold for 4.96% and the six-month bills averaged 5%. The new discount rates understate the actual return to investors: 5.12% for three-month bills, with a $10,000 bill selling for $9,874, and 5.27% for a six-month bill selling for $9,744.20. Upcoming auctions are scheduled next Tuesday for two-year notes and April 29 for five-year notes. Separately, the Federal Reserve Board said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 5.39% last week from 5.3% the previous week.