Record Low Yields in Treasury Auction
Associated Press
The Treasury Department sold $13 billion in three-month bills at a discount rate of 1.53%, down from 1.655% last week. An additional $13 billion was sold in six-month bills at a rate of 1.58%, down from 1.75%.
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--1.558% for three-month bills with a $10,000 bill selling for $9,961.30 and 1.615% for a six-month bill selling for $9,920.10.
In a separate report, the Federal Reserve said that the average yield for one-year constant maturity Treasury bills fell to 2.13% from 2.24% the previous week.
