T-Bill Rates Fall To Nine-Month Low

Interest rates on short-term Treasury securities fell in Monday’s auction.

The Treasury Department sold $12.1 billion in three-month bills at an average discount rate of 5.34 percent, down from 5.43 percent last week. Another $12.1 billion was sold in six-month bills, also at an average discount rate of 5.34 percent.

The three-month bill rate was the lowest since they sold for 5.29 percent on Nov. 14. The six-month bill rate was the lowest since 5.30 percent on July 10.

The new discount rates understate the actual return to investors - 5.50 percent for three-month bills with a $10,000 bill selling for $9,865, and 5.58 percent for a six-month bill selling for $9,730.