Three-Month T-Bill Rates Lowest in 3 Weeks

The Treasury Department auctioned $19 billion in three-month bills at a discount rate of 2.32%. It auctioned $16 billion in six-month bills at a discount rate of 2.61%.

The three-month rate was down from 2.36% last week and was the lowest since Jan. 3, when it averaged 2.275%. The six-month rate was down from 2.635% last week and was the lowest since Jan. 10, when it was 2.6%. The rates understate the actual return to investors -- 2.366% for three-month bills, with a $10,000 bill selling for $9,941.36, and 2.682% for a six-month bill selling for $9,868.05.

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, rose to 2.87% last week from 2.85% the previous week.