Short-Term T-Bill Rates Steady

The Treasury Department sold $14.1 billion in three-month bills at an average discount rate of 5.03%, the same as the week before. An additional $14.1 billion was sold in six-month bills at an average rate of 5.07%, also unchanged. The three-month bill rate is at the highest level since they sold for 5.04% on Nov. 4. The six-month bill rate of 5.07% was the lowest since they averaged 5.02% on April 22. The new discount rates understate the actual return to investors--5.16% for three-month bills, with a $10,000 bill selling for $9,874.30 and 5.27% for a six-month bill selling for $9,745.10. Separately, the Federal Reserve Board said that the average yield for one-year T-bills rose to 5.42% last week from 5.41% the previous week. The next auction of five-year notes will be Dec. 19.