Rates on 3-, 6-month T-bills decline in auction
From the Associated Press
The Treasury Department auctioned $18 billion in three-month bills at a discount rate of 4.940%, down from 4.955% last week. Similarly, $15 billion in six-month bills was auctioned at a discount rate of 4.940%, also down from 4.955% last week.
These rates understate the actual return to investors -- 5.071% for three-month bills, with a $10,000 bill selling for $9,876.50, and 5.136% for a six-month bill selling for $9,751.63.
Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, was 5.03%, unchanged from last week.
