Short-term T-bill rates drop in sale
From Times Staff and Wire Reports
The Treasury Department auctioned $15 billion in three-month bills at a discount rate of 4.710%, down from 4.780% last week. An additional $14 billion in six-month bills was auctioned at a discount rate of 4.790%, down from 4.805% last week.
The new discount rates understate the actual return to investors -- 4.846% for the three-month bills, with a $10,000 bill selling for $9,880.94, and 4.99% for a six-month bill selling for $9,757.84.
Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose slightly to 4.96% last week from 4.95% the previous week.
