Treasury Bill Rates Lowest Since October

The Treasury Department sold $7.51 billion in three-month bills at a discount rate of 4.28%, down from 4.39% last week. An additional $7.5 billion was sold in six-month bills at 4.31%, down from 4.41%. The rates were the lowest since Oct. 26, when three-month bills sold for 4.07% and the six-month rate was 4.16%. The new discount rates understate the actual return to investors: 4.39% for three-month bills, with a $10,000 bill selling for $9,891.80, and 4.47% for a six-month bill selling for $9,782.10. An auction of two-year notes is tentatively scheduled for Jan. 27. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 4.51% last week from 4.55% the previous week.