Treasury Bill Rates Are Mixed

The Treasury Department sold $5.77 billion in three-month bills at an average discount rate of 4.94%, down from 4.99% last week. An additional $7.26 billion was sold in six-month bills at an average rate of 5.12%, up from 5.06%. The three-month rate was the lowest since last Oct. 6, when the bills sold for 4.93%. The six-month rate was the highest since April 13, when the average was 5.13%. The new discount rates understate the actual return to investors: 5.07% for three-month bills, with a $10,000 bill selling for $9,875.10, and 5.32% for a six-month bill selling for $9,741.40. Upcoming auctions are scheduled tentatively for today for two-year notes and Wednesday for five-year notes. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 5.40% last week, from 5.39% the previous week.