Short-Term Treasury Rates Mixed

The Treasury Department sold $11.1 billion in three-month bills at an average discount rate of 5.07%, down from 5.12% last week. An additional $12.9 billion was sold in six-month bills at an average rate of 5.19%, up from 5.14%. The rate on three-month bills was the lowest since they sold for 5.05% on July 14. The six-month bills’ rate was the highest since they averaged 5.23% on Aug. 11. The new discount rates understate the actual return to investors: 5.21% for three-month bills, with a $10,000 bill selling for $9,871.80, and 5.40% for a six-month bill selling for $9,737.60. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills rose to 5.59% last week from 5.54% the previous week. The next auction of two-year notes will be Sept. 23 and five-year notes on Sept. 24.