Interest Rates Down in Treasury Auction
Associated Press
The Treasury Department sold $17 billion in three-month bills at a discount rate of 1.72%, down from 1.73% last week. An additional $15 billion was sold in six-month bills at a rate of 1.875%, down from 1.89%.
The new discount rates understate the actual return to investors--1.752% for three-month bills, with a $10,000 bill selling for $9,956.50, and 1.919% for a six-month bill selling for $9,905.20.
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 2.35% last week from 2.38% the week before.
