Interest Rates Fall in T-Bill Auction

From Associated Press

The Treasury Department sold $19 billion in three-month bills at a discount rate of 1.68%, down from 1.685% last week. It sold an additional $17 billion in six-month bills at 1.955%, down from 1.99%.

The new rates understate the actual return to investors -- 1.711% for three-month bills, with a $10,000 bill selling for $9,957.53, and 2.002% for a six-month bill selling for $9,901.16.

In a separate 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 2.24% last week from 2.2% the previous week.