Rates on Short-Term T-Bills Fall at Auction
The Treasury Department auctioned $18 billion in three-month bills at a discount rate of 1.55%. An additional $17 billion in six-month bills was auctioned at 1.515%.
The three-month rate was down from 1.665% last week and was the lowest since Sept. 30, when the bills averaged 1.54%. The six-month rate was down from 1.665% last week and was the lowest since Sept. 30, when it was 1.475%.
The new discount rates understate the actual return to investors -- 1.578% for three-month bills, with a $10,000 bill selling for $9,960.80, and 1.548% for a six-month bill selling for $9,923.40.
Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 1.79% last week from 1.77% the previous week.