Rates on 3- and 6-Month Treasury Bills Fall

The Treasury Department sold $7.5 billion in three-month bills at a discount rate of 4.52%, down from 4.6% last week. An additional $7.5 billion was sold in six-month bills at a rate of 4.49%, down from 4.54%. The new discount rates understate the actual return to investors: 4.65% for three-month bills, with a $10,000 bill selling for $9,885.70, and 4.67% for a six-month bill selling for $9,773.00. An auction of two-year notes is tentatively scheduled for July 28. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills fell to 5.01% last week from 5.06% the previous week.