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CALIFORNIA | BRIEFLY / THE ECONOMY

3-Month T-Bill Rate Lowest Since October

April 06, 1999|Associated Press

The Treasury Department sold $6.5 billion in three-month bills at a discount rate of 4.27%, down from 4.38% last week. An additional $7.5 billion was sold in six-month bills at a rate of 4.35%, up slightly from 4.34% last week. The three-month rate was the lowest since Oct. 26, when the bills sold for 4.07%. The six-month rate was the highest since March 22, when the rate was 4.42%. The new discount rates understate the actual return to investors: 4.383% for three-month bills, with a $10,000 bill selling for $9,892.20, and 4.517% for a six-month bill selling for $9,780.30. An auction of two-year notes is tentatively scheduled for April 28. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 4.72% last week from 4.75% the previous week.

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