Rates Dip on 3-, 6-Month T-Bills

The Treasury Department sold $9.5 billion in three-month bills at a discount rate of 6.065%, down from 6.14% last week. An additional $8.5 billion was sold in six-month bills at a rate of 6.03%, down from 6.100%. Both the three-month and six-month rates were the lowest since July 24 when the bills sold for 6.01%. The new discount rates understate the actual return to investors--6.245% for three-month bills, with a $10,000 bill selling for $9,846.70, and 6.305% for a six-month bill selling for $9,695.20. Separately, the Federal Reserve said that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 6.23% last week from 6.2% the previous week.