WASHINGTON -- Interest rates on short-term Treasury securities fell in yesterday's auction.
The Treasury Department sold $19 billion in three-month bills at a discount rate of 0.930 percent, down from 0.940 percent last week. An additional $17 billion was sold in six-month bills at a rate of 0.975 percent, down from 0.990 percent.
The three-month rate was the lowest since Feb. 17 when the bills sold for 0.915 percent. The six-month rate was the lowest since Jan. 26 when the rate was 0.955 percent.
The new discount rates understate the actual return to investors -- 0.945 percent for three-month bills with a $10,000 bill selling for $9,976.50 and 0.994 percent for a six-month bill selling for $9,950.70.
In a separate report, the Federal Reserve said yesterday that the average yield for one-year constant maturity Treasury bills, a popular index for making changes in adjustable rate mortgages, edged up to 1.23 percent last week from 1.22 percent the previous week.