Interest rates on short-term Treasuries fall
WASHINGTON -- Interest rates on short-term Treasury securities fell in yesterday's auction.
The Treasury Department sold $17 billion in three-month bills at a discount rate of 0.905 percent, down from 0.920 percent last week. An additional $17 billion was sold in six-month bills at a rate of 0.985 percent, down from 0.995 percent.
The three-month rate was the lowest since July 21, when the bills sold for 0.895 percent.
The six-month rate was the lowest since July 28, when the rate was 0.980 percent.
The new discount rates understate the actual return to investors -- 0.923 percent for three-month bills with a $10,000 bill selling for $9,977.10 and 1.006 percent for a six-month bill selling for $9,950.20.
Separately, the Federal Reserve said the average yield for one-year constant maturity Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 1.20 percent last week from 1.17 percent the previous week.
