Rates Mixed on Short-Term T-Bills

The Treasury Department sold $11.5 billion in three-month bills at a discount rate of 3.540%, down from 3.630% last week. An additional $9.5 billion was sold in six-month bills at a rate of 3.640%, unchanged from last week. The three-month rate was the lowest since March 28, 1994, when the bills sold for 3.50%. The new discount rates understate the actual return to investors--3.622% for three-month bills, with a $10,000 bill selling for $9,910.50, and 3.759% for a six-month bill selling for $9,815.