Treasury Bill Rates Decline: The Treasury sold...

Treasury Bill Rates Decline: The Treasury sold $10 billion of new three-month bills at an average discount rate of 5.46%, down from 5.50% last week. Another $10 billion of new six-month bills was sold at an average discount rate of 5.65%, down from 5.66% last week. The three-month bill rate was the lowest since they sold for 5.12% on Oct. 26, 1987. The six-month bill rate was the lowest since they averaged 5.63% on May 13, 1991. The new discount rates understate the actual return to investors--5.63% for three-month bills, with a $10,000 bill selling for $9,862.00, and 5.91% for a six-month bill selling for $9,712.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 5.65% 3-month: 5.46%