Treasury Bill Rates Mixed at Auction

The Treasury Department sold $7.5 billion in three-month bills at a discount rate of 4.48%, unchanged from last week. Another $7.5 billion was sold in six-month bills at a rate of 4.51%, up from 4.49%. The six-month rate is the highest since March 15, when the rate was 4.53%. The new discount rates understate the actual return to investors--4.60% for three-month bills, with a $10,000 bill selling for $9,886.80, and 4.69% for a six-month bill selling for $9,770.70. The next auction of five-year notes is today; 10-year notes will be auctioned Wednesday. 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, rose to 4.78% last week from 4.73% the previous week.