Rates Mixed on Short-Term T-Bills
Times Staff and Wire Reports
The Treasury Department sold $13.2 billion in three-month bills at an average discount rate of 5.01%, up from 4.98% last week. An additional $13 billion was sold in six-month bills at an average rate of 5.03%, the same as last week. The three-month bill rate was the highest since they sold for 5.02% on Feb. 10. The new discount rates understate the actual return to investors: 5.14% for three-month bills, with a $10,000 bill selling for $9,873.40, and 5.23% for a six-month bill selling for $9,745.70. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills fell to 5.47% last week from 5.49% the previous week. The next auction of two-year notes will be today; five-notes will be auctioned Feb. 26.
