Rates on Short-Term T-Bills Drop in Auction
From Associated Press
The Treasury Department auctioned $18 billion in three-month bills at a discount rate of 2.735%, down from 2.780% last week. An additional $16 billion in six-month bills was auctioned at a discount rate of 3.035%, down from 3.09% last week.
The new discount rates understate the actual return to investors -- 2.792% for three-month bills, with a $10,000 bill selling for $9,930.87, and 3.125% for a six-month bill selling for $9,846.56.
In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, remained unchanged at 3.38% this week.
