T-Bill Rates Down Slightly in Latest Sale

The Treasury Department sold $8.6 billion in three-month bills at a discount rate of 5.710%, down from 5.720% last week. An additional $7.5 billion was sold in six-month bills at a rate of 5.900%, down from 5.905%. The three-month rate was the lowest since March 6, when the bills sold for 5.69%. The six-month rate was the lowest since March 20, when the rate was 5.895%. The new discount rates understate the actual return to investors--5.873% for three-month bills, with a $10,000 bill selling for $9,855.70, and 6.166% for a six-month bill selling for $9,701.70. An auction of two-year notes is tentatively scheduled for April 26. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills rose to 6.30% last week from 6.24% the previous week.