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Rates Mixed on Short-Term Treasuries

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<i> Associated Press</i>

The Treasury Department sold $5.77 billion in three-month bills at an average discount rate of 4.95%, down from 4.98% last week. An additional $7.26 billion was sold in six-month bills at an average rate of 5.045%, up from 5.025%. The three-month rate was the lowest since June 1, when the bills sold for 4.945%. The six-month rate was the highest since June 29, when the average was 5.055%. The new discount rates understate the actual return to investors: 5.081% for three-month bills, with a $10,000 bill selling for $9,874.90, and 5.250% for a six-month bill selling for $9,744.90. Upcoming auctions: two-year notes, July 29; five-year notes, Aug. 11; 10-year notes, Aug. 12; 30-year bond, Aug. 13. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 5.36% last week from 5.34% the previous week.

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