Rates on 3-, 6-Month Treasury Bills Fall

The Treasury Department sold $18 billion in three-month bills at a discount rate of 1.150%, down from 1.155% last week. An additional $16 billion was sold in six-month bills at a rate of 1.165%, down from 1.185%.

The new discount rates understate the actual return to investors -- 1.171% for three-month bills with a $10,000 bill selling for $9,970.90 and 1.188% for a six-month bill selling for $9,941.10.

In a separate report, the Federal Reserve said the average yield for one-year constant maturity Treasury bills, the most popular index for making changes in adjustable-rate mortgages, was unchanged at 1.32% last week.