Interest Rates on T-Bills Fall in Auction
Associated Press
The Treasury Department sold $17 billion in three-month bills at a discount rate of 1.680%, down from 1.700% last week. An additional $15 billion was sold in six-month bills at a rate of 1.765%, down from 1.800%.
The new discount rates understate the actual return to investors--1.712% for three-month bills with a $10,000 bill selling for $9,957.50 and 1.805% for a six-month bill selling for $9,910.80.
Separately, 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, dipped to 2.13% last week from 2.24% the previous week.
