Treasury Bill Rates Fall: Interest rates on...

Treasury Bill Rates Fall: Interest rates on short-term Treasury securities fell in the latest auction. The Treasury sold $7 billion in three-month bills at an average discount rate of 8.64%, down from 8.66% last week. Another $7 billion was sold in six-month bills at a discount rate which also averaged 8.64%, down from 8.72% last week. The rates were the lowest since April 17, when three-month bills sold for 8.57% and six-month bills averaged 8.59%. The new discount rates understate the actual return to investors--8.96% for three-month bills with a $10,000 bill selling for $9,781.60 and 9.16% for a six-month bill selling for $9,563.20.