Short-Term T-Bill Rates Lowest Since 1996

The Treasury Department sold $5.77 billion in three-month bills at an average discount rate of 4.790%, down from 4.800% last week and the lowest rate since Dec. 16, 1996, when the bills sold for 4.76%. An additional $7.29 billion was sold in six-month bills, also at an average rate of 4.790%, down from 4.830% and the lowest rate since Feb. 20, 1996, when the average was 4.75%. The new discount rates understate the actual return to investors: 4.917% for three-month bills, with a $10,000 bill selling for $9,878.90, and 4.978% for a six-month bill selling for $9,757.80. The next auction of two-year notes will be Sept. 23. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills fell to 4.91% last week from 5.10% the previous week.