Short-Term T-Bill Rates Fall: Interest rates on...

Short-Term T-Bill Rates Fall: Interest rates on short-term Treasury securities fell in auction to their lowest levels in a month. The Treasury Department sold $8.2 billion in three-month bills at an average discount rate of 7.80%, down from 7.83% last week. Another $8.2 billion was sold in six-month bills at the same average discount rate of 7.80%, down from 7.81% last week. The discount rates understate the actual return to investors--8.07% for three-month bills with a $10,000 bill selling for $9,802.80 and 8.23% for a six-month bill selling for $9,605.70. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 8.29% last week from 8.34% the previous week.