Interest Rates Fall in Treasury Bill Auction
From Associated Press
The Treasury Department sold $16 billion in three-month bills at a discount rate of 0.9%, down from 0.925% last week. An additional $16 billion was sold in six-month bills at a rate of 1.0%, down from 1.03%.
The new discount rates understate the actual return to investors -- 0.915% for three-month bills, with a $10,000 bill selling for $9,977.30, and 1.023% for a six-month bill selling for $9,949.40.
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, rose to 1.37% last week from 1.35% the previous week.
