Rates Down for 3- and 6-Month Treasury Bills

The Treasury Department sold $7.52 billion in three-month bills at a discount rate of 4.470%, down from 4.510% last week. It sold another $7.52 billion in six-month bills at a rate of 4.530%, down from 4.540%. The new discount rates understate the actual return to investors: 4.597% for three-month bills, with a $10,000 bill selling for $9,887, and 4.713% for a six-month bill selling for $9,771. An auction of two-year notes is tentatively scheduled for March 24. Separately, 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 4.77% last week from 4.89% the previous week.