T-Bill Rates Drop: Interest rates on short-term...

T-Bill Rates Drop: Interest rates on short-term Treasury securities fell to their lowest level in eight months. The Treasury Department sold $6.6 billion in three-month bills at an average discount rate of 7.96%, down from 8.07% last week. Another $6.6 billion was sold in six-month bills at an average discount rate of 7.63%, down from 7.78% last week. The rates were the lowest since three-month bills sold for 7.82% last Nov. 14 and six-month bills averaged 7.48% last Oct. 31. The discount rates understate the actual return to investors--8.24% for three-month bills, with a $10,000 bill selling for $9,798.80, and 8.05% for a six-month bill selling for $9,614.30.