Short-Term Rates Fall in Treasury Auction

The Treasury Department sold $14 billion in three-month bills at a discount rate of 0.93%, down from 0.935% last week. An additional $14 billion was sold in six-month bills at 0.995%, down from 1.01%.

The three-month rate was the lowest since July 21, when the bills sold for 0.895%. The six-month rate was the lowest since July 28, when the rate was 0.98%.

The new discount rates understate the actual return to investors -- 0.947% for three-month bills, with a $10,000 bill selling for $9,976.50, and 1.017% for a six-month bill selling for $9,949.70.