3-, 6-Month T-Bill Rates Are Lowest Since ’99

The Treasury Department sold $12 billion in three-month bills at a discount rate of 4.920%, down from 4.980% last week. An additional $10 billion was sold in six-month bills at a rate of 4.755%, down from 4.840%. The three-month rate was the lowest since Oct. 12, 1999, when the bills sold for 4.780%. The six-month rate was the lowest since Aug. 2, 1999, when the rate was 4.750%. The new discount rates understate the actual return to investors--5.053% for three-month bills, with a $10,000 bill selling for $9,875.60, and 4.940% for a six-month bill selling for $9,759.60. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 4.66% last week from 4.83% the previous week.