Treasury Bill Rates Fall for the Week

The Treasury Department sold $15 billion in three-month bills at a discount rate of 3.550%, down from 3.560% last week. An additional $13 billion was sold in six-month bills at a rate of 3.490%, down from 3.500%.

Both the three-month and six-month rates were the lowest since June 25 when they were 3.375% and 3.340%, respectively.

The new discount rates understate the actual return to investors--3.630% for three-month bills with a $10,000 bill selling for $9,910.30 and 3.601% for a six-month bill selling for $9,823.60.

In a separate report, the Federal Reserve said that the average yield for one-year constant maturity Treasury bills, the most popular index for making changes in adjustable rate mortgages, fell to 3.62% last week from 3.70% the previous week.