Interest Rates Fall in T-Bill Auction
From Associated Press
The Treasury Department sold $18 billion in three-month bills at a discount rate of 1.04%, down from 1.06% last week. It sold an additional $15 billion in six-month bills at 1.335%, down from 1.34%.
Both the three-month and six-month rates were the lowest since May 3, when the bills sold for 0.985% and 1.175%, respectively.
The rates understate the actual return to investors -- 1.058% for three-month bills, with a $10,000 bill selling for $9,973.70, and 1.363% for a six-month bill selling for $9,932.50.
In another report, the Federal Reserve said the average yield for one-year constant-maturity Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 1.83% last week from 1.63% the previous week.
