Rates Are Mixed in T-Bill Auction
(Associated Press)
The Treasury Department sold $6.1 billion in three-month bills at an average discount rate of 5.21%, up from 5.15% last week. An additional $6 billion was sold in six-month bills at an average rate of 5.38%, down from 5.42%. The three-month bill rate is the highest since they sold for 5.26% on March 24. The six-month bill rate is the lowest since they averaged 5.30% on April 7. The new discount rates understate the actual return to investors--5.35% for three-month bills with a $10,000 bill selling for $9,868.30 and 5.61% for a six-month bill selling for $9,728. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills fell to 5.98% last week from 5.99% the previous week.
