Rate Slips on 6-Month Treasury Bills

The Treasury Department sold $15 billion in three-month bills at a discount rate of 3.48%, unchanged from last week. An additional $14 billion was sold in six-month bills at a rate of 3.38%, down from 3.44%.

The new discount rates understate the actual return to investors--3.561% for three-month bills with a $10,000 bill selling for $9,912.00 and 3.487% for a six-month bill selling for $9,829.10.

In a separate report, the Federal Reserve said the average yield for one-year constant maturity Treasury bills, the most popular index for making changes in adjustable rate mortgages, fell to 3.59% last week from 3.6% the previous week.