Treasury Bill Rates Edge Lower

The Treasury Department sold $8 billion in three-month bills at a discount rate of 4.32%, down from 4.44% last week. Another $8 billion was sold in six-month bills at a rate of 4.38%, down from 4.41%. The new discount rates understate the actual return to investors: 4.43% for three-month bills, with a $10,000 bill selling for $9,890.80, and 4.54% for a six-month bill selling for $9,778.80. The next auctions are scheduled tentatively for Dec. 29 for two-year notes and Feb. 9 for five-year notes. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills fell to 4.46% last week from 4.59% the previous week.