Short-Term T-Bill Rates Fall: Interest rates on...

Short-Term T-Bill Rates Fall: Interest rates on short-term Treasury securities fell at auction to their lowest level in about two years. The Treasury Department sold $9.2 billion in three-month bills at an average discount rate of 7.23%, down from 7.50% last week. Another $9.2 billion was sold in six-month bills at an average discount rate of 7.19%, down from 7.37% last week. The rates were the lowest since three-month bills sold for 7.17% on Sept. 19, 1988, and six-month bills averaged 7.15% on Aug 1, 1988. The new discount rates understate the actual return to investors--7.47% for three-month bills with a $10,000 bill selling for $9,817.20 and 7.56% for a six-month bill selling for $9,636.50.