Rates Dip on 3- and 6-Month Treasury Bills

The Treasury Department sold $8.5 billion in three-month bills at a discount rate of 5.775%, down from 5.800% last week. An additional $7.5 billion was sold in six-month bills at a rate of 6.005%, down from 6.040%. The three-month rate was the lowest since May 30, when the bills sold for 5.730%. The six-month rate was the lowest since May 1, when the rate was 5.935%. The new discount rates understate the actual return to investors--5.943% for three-month bills, with a $10,000 bill selling for $9,854, and 6.279% for a six-month bill selling for $9,696.40.