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

Short-Term T-Bill Rates Down: Interest rates on short-term Treasury securities fell at auction to their lowest level in two weeks. The Treasury Department sold $7.8 billion in three-month bills at an average discount rate of 7.64%, down from 7.77% last week. Another $7.8 billion was sold in six-month bills at an average discount rate of 7.52%, down from 7.64% last week. The new discount rates understate the actual return to investors--7.90% for three-month bills, with a $10,000 bill selling for $9,806.90, and 7.93% for a six-month bill selling for $9,619.80. The average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 7.80% last week, up from 7.66% the previous week.