T-Bill Rates Fall to Lowest Levels in 3 Weeks

The Treasury Department auctioned $10.9 billion in three-month bills at an average discount rate of 5.08%. An additional $11.3 billion in six-month bills was auctioned at an average discount rate of 5.07%. The three-month rate was down from 5.1% last week and was the lowest since 5.07% Jan. 26. The six-month rate was down from 5.08% last week and was the lowest since 5.03% on Jan. 26. The new discount rates understate the actual return to investors: 5.21% for three-month bills, with a $10,000 bill selling for $9,871.70, and 5.28% for a six-month bill selling for $9,743.70. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills rose to 5.28% last week from 5.26% the previous week. The next auction of two-year notes is Tuesday. The next auction of five-year notes is next Wednesday.