Short-Term T-Bill Rates Edge Down

The Treasury Department sold $15 billion in three-month bills at a discount rate of 3.35%, down from 3.43% last week. An additional $14 billion was sold in six-month bills at a rate of 3.26%, down from 3.35%.

The three-month rate was the lowest since Feb. 22, 1994, when the bills sold for 3.33%. The six-month rate was the lowest since Jan. 31, 1994, when the rate was 3.16%.

The new discount rates understate the actual return to investors--3.43% for three-month bills with a $10,000 bill selling for $9,915.30 and 3.36% for a six-month bill selling for $9,835.20.

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, fell to 3.5% last week from 3.56% the previous week.