Treasury Bill Rates Lowest in 44 Years

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 1.410%. Another $17 billion in six-month bills was auctioned at a discount rate of 1.395%.

The three-month rate was down from 1.550% last week and was the lowest since 1.164% on Aug. 4, 1958. The six-month rate was down from 1.515% last week and was the lowest since the government started selling these bills in 1958.

The new discount rates understate the actual return to investors -- 1.433% for three-month bills, with a $10,000 bill selling for $9,964.40, and 1.424% for a six-month bill selling for $9,929.50.

In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 1.51% last week from 1.79% the previous week.