Rates Mixed on Short-Term Treasury Bills
The Treasury Department sold $5.81 billion in three-month bills at an average discount rate of 4.995%, up from 4.99% last week. An additional $7.28 billion was sold in six-month bills at an average rate of 5.02%, down from 5.12%. The three-month rate was the highest since June 15, when the bills sold for 5.01%. The six-month rate was the lowest since April 6, when the average was 5%. The new discount rates understate the actual return to investors: 5.13% for three-month bills, with a $10,000 bill selling for $9,873.70, and 5.26% for a six-month bill selling for $9,744.40. 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 5.41% last week from 5.40% the previous week.