Short-Term T-Bill Rates Lowest in Six Weeks

The Treasury Department auctioned $12 billion in three-month bills at a discount rate of 6.160%, the lowest since 6.080% on Oct. 16. An additional $10 billion in six-month bills was auctioned at a discount rate of 6.045%, down from 6.050% last week and the lowest since 5.990% on Oct. 16. The new discount rates understate the actual return to investors--6.344% for three-month bills, with a $10,000 bill selling for $9,844.30, and 6.322% for a six-month bill selling for $9,694.40. The next auction of two-year notes is Wednesday. Separately, the Federal Reserve said the average yield for one-year Treasury bills was unchanged at 6.09% last week.