Short-term rates fall in T-bill auction

The Treasury Department auctioned $16 billion in three-month bills at a discount rate of 3.82%, down from 4.05% last week. Also, $13 billion in six-month bills was auctioned at 4%, down from 4.13% 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 $9,903.44.

Separately, the Federal Reserve said the average yield for one-year Treasury bills -- a popular index for making changes in adjustable-rate mortgages -- fell to 4.11% last week from 4.15% the previous week.