Rates Mixed at Treasury Bill Auction

The Treasury Department auctioned $7.28 billion in three-month bills at an average discount rate of 5.145%, down from 5.165% last week. An additional $7.29 billion was sold in six-month bills at an average rate of 5.195%, up from 5.165%. The three-month bill rate was the lowest since 5.12% on Nov. 3. The six-month-bill rate was the highest since they averaged 5.23% on Aug. 11. In a separate auction, yields on two-year notes fell to the lowest at auction in a year. The high yield was 5.7%, down from 5.72% on Oct. 28. A total of $15 billion in notes was sold out of bids totaling $39.9 billion. Separately, the Federal Reserve Board said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 5.46% last week from 5.44% the previous week. The next auction of five-year notes will be today.