Rate on Six-Month T-Bills at Record Low

The Treasury Department sold $12 billion in three-month bills at a discount rate of 1.655%, down from 1.71% last week. An additional $14 billion was sold in six-month bills at a rate of 1.75%, down from 1.8%.

The three-month rate was the lowest since Aug. 11, 1958, when the bills sold for 1.524%. The six-month rate was the lowest since the government began selling six-month bills in 1958.

The new discount rates understate the actual return to investors--1.684% for three-month bills with a $10,000 bill selling for $9,958.20 and 1.791% for a six-month bill selling for $9,911.50.

In a separate report, the Federal Reserve said that the average yield for one-year constant maturity Treasury bills dipped to 2.24% last week from 2.28% the previous week.