Short-term T-bill rates slip in sale

From Times Wire Service

The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 1.865%, down from 1.9% last week. An additional $23 billion in six-month bills was sold at a discount rate of 2.06%, down from 2.135%.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,952.86, while a six-month bill sold for $9,895.86. That would equal an annualized rate of 1.9005% for the three-month bills and 2.111% for the six-month bills.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for adjustable-rate mortgages, fell to 2.35% last week, from 2.46% the previous week.