Interest Rates Fall on Short-Term T-Bills
Associated Press
The Treasury Department sold $15 billion in three-month bills at a discount rate of 3.48%, down from 3.55% last week. An additional $14 billion was sold in six-month bills at a rate of 3.44%, down from 3.49%.
The new discount rates understate the actual return to investors--3.561% for three-month bills, with a $10,000 bill selling for $9,912, and 3.549% for a six-month bill selling for $9,826.10.
In a separate report, the Federal Reserve said that the average yield for one-year constant maturity Treasury bills fell to 3.6% last week, from 3.62% the previous week.
