Rates on Short-Term T-Bills Fall in Auction
From Associated Press
The Treasury Department auctioned $18 billion in three-month bills at a discount rate of 3.46%, down from 3.47% last week. An additional $16 billion in six-month bills was auctioned at a discount rate of 3.69%, down from 3.705% last week.
The new discount rates understate the actual return to investors: 3.539% for three-month bills, with a $10,000 bill selling for $9,911.58, and 3.812% for a six-month bill selling for $9,813.45.
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, slipped to 3.89% last week from 3.9% the previous week.
