Rates On Short-Term Treasuries Fall

The Treasury Department sold $6.28 billion in three-month bills at an average discount rate of 4.97%, down from 5.12% last week. An additional $7.26 billion was sold in six-month bills at an average rate of 5.01%, down from 5.125%. The three-month rate was the lowest since Jan. 12, when the bills sold for 4.965%. The six-month rate was the lowest since Jan. 20, when the average was 4.995%. The new discount rates understate the actual return to investors--5.102% for three-month bills with a $10,000 bill selling for $9,874.40 and 5.212% for a six-month bill selling for $9,746.70. Upcoming auctions are scheduled tentatively for March 24 for two-year notes and March 25 for five-year notes. In a separate report, the Federal Reserve said that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 5.43% last week from 5.42% the previous week.