Short-term T-bill rates drop in sale

The Treasury Department auctioned $13 billion in three-month bills at a discount rate of 4.760%, down from 4.785% last week. An additional $12 billion in six-month bills was auctioned at a discount rate of 4.815%, down from 4.820% last week.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,879.68, while a six-month bill sold for $9,756.57.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, was 4.90% last week, unchanged from the previous week.