Short-Term T-Bill Rates Fall to a 7-Year Low

Interest rates on short-term Treasury securities fell in the latest auction to the lowest point in seven years.

The Treasury Department sold $12.5 billion in three-month bills at a discount rate of 3.51%, down from 3.59% last week. An additional $11.5 billion was sold in six-month bills at a rate of 3.51%, down from 3.52%.

The three-month rate was the lowest since March 28, 1994, when the bills sold for 3.5%. The six-month rate was the lowest since Feb. 14, 1994, when the rate was 3.43%.

In a separate report, the Federal Reserve said that the average yield for one-year constant maturity Treasury bills fell to 3.64% last week from 3.70% the previous week.