Short-Term T-Bill Rates Hold Steady

The Treasury Department sold $14.1 billion in three-month bills at an average discount rate of 5.03%, up slightly from 5.02% last week. Another $14.1 billion was sold in six-month bills at an average rate of 5.07%, the same as a week ago. The three-month bill rate was the highest since they sold for 5.04% on Nov. 4. The six-month bill rate of 5.07% for the last two weeks 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 $9,872.90, and 5.28% for a six-month bill selling for $9,743.70. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 5.41% last week from 5.44% the previous week. The next auction of two-year notes is today; five-year notes will be auctioned Nov. 20.