The Treasury Department sold $6.4 billion in...

The Treasury Department sold $6.4 billion in three-month bills at an average discount rate of 5.98%, the same as last week. Another $6.4 billion was sold in six-month bills at an average discount rate of 6.19%, down from 6.21% last week and the lowest since 6% on March 28. The three-month bill rate this week and last was the highest since these bills averaged 6% on Dec. 14. The new discount rates understate the actual return to investors--6.16% for three-month bills, with a $10,000 bill selling for $9,848.80, and 6.48% for six-month bills selling for $9,687.10. In a separate report, the Federal Reserve said that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate home mortgages, was 7.01% last week, up from 6.78% the week before.