Interest Rates Fall At T-Bill Auction

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

The Treasury Department sold $12.6 billion in three-month bills at an average discount rate of 5.34 percent, down from 5.43 percent last week. Another $12.6 billion worth of bills was sold in six-month bills at an average discount rate of 5.25 percent, down from 5.33 percent.

The three-month bill rate was the lowest since they sold for 5.29 percent on Oct. 30. The six-month bill rate was the lowest since they averaged 5.22 percent on Sept. 18.

The new discount rates understate the actual return to investors - 5.50 percent for three-month bills with a $10,000 bill selling for $9,866.50 and 5.48 percent for a six-month bill selling for $9,736.00