Interest Rates Mixed on Treasury Securities

The Treasury Department sold $11.59 billion in three-month bills at an average discount rate of 5.12%, up from 5.11% last week. An additional $12.14 billion was sold in six-month bills at an average rate of 5.15%, down from 5.17%. The three-month bill rate is the highest since they sold for 5.17% on May 19. The six-month bill rate is the lowest since they averaged 5.09% on July 14. The new discount rates understate the actual return to investors--5.26% for three-month bills with a $10,000 bill selling for $9,870.60 and 5.36% for a six-month bill selling for $9,739.60. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills fell to 5.54% last week from 5.56% the previous week. The next auction of 52-week bills will be Aug. 14.