3-, 6-Month T-Bill Rates Dip Slightly

The Treasury Department sold $8.5 billion in three-month bills at a discount rate of 5.62%, down from 5.645% last week. An additional $7.5 billion was sold in six-month bills at a rate of 5.745%, down from 5.765%. The new discount rates understate the actual return to investors--5.782% for three-month bills, with a $10,000 bill selling for $9,857.90, and 5.998% for a six-month bill selling for $9,709.60. An auction of two-year notes is tentatively scheduled for Wednesday. 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 6.09% last week from 6.14% the previous week.