Treasury Bill Rates Mixed

The Treasury Department sold $13 billion in three-month bills at an average discount rate of 4.76%, down from 4.83% last week, the lowest level in two years. The rate on six-month bills rose to 4.99%, up from 4.97% last week, with $13 billion sold. The three-month bill rate was the lowest since they sold for 4.61% on Sept. 19, 1994. The six-month bill rate was the highest since two weeks ago when they averaged 5.04%. The new discount rates understate the actual return to investors: 4.88% for three-month bills, with a $10,000 bill selling for $9,879.70, and 5.19% for a six-month bill selling for $9,747.70. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills rose to 5.46% last week from 5.42% the previous week. The next auction of two-year notes will be Wednesday; five-year notes will be auctioned Thursday.