Interest rates on short-term Treasury securities fell in Monday’s auction.
The Treasury Department sold $13.6 billion in three-month bills at an average discount rate of 4.99 percent, down from 5.02 percent last week. Another $13.5 billion was sold in six-month bills at an average discount rate of 4.97 percent, down from 5.06 percent.
The three-month bill rate was the lowest since they sold for 4.95 percent on March 11. The six-month bill rate was the lowest since they averaged 4.80 percent on March 4.
The new discount rates understate the actual return to investors - 5.12 percent for three-month bills with a $10,000 bill selling for $9,873.90 and 5.17 percent for a six-month bill selling for $9,748.70.
In a separate report, the Federal Reserve said Monday that the average yield for one-year Treasury bills rose to 5.44 percent from 5.41 percent the previous week.