Rates Mixed in Treasury Securities Auctions

The Treasury Department sold $7.31 billion in three-month bills at an average discount rate of 5.12%, down from 5.14% last week. An additional $7.28 billion was sold in six-month bills at an average rate of 5.13%, up from 5.04%. The three-month rate is the lowest since Feb. 17, when the bills sold for 5.08%. The six-month rate is the highest since Jan. 5, when the average was 5.13%. The new discount rates understate the actual return to investors--5.26% for three-month bills, with a $10,000 bill selling for $9,870.60, and 5.33% for a six-month bill selling for $9,740.90. Upcoming auctions are tentatively scheduled March 24 for two-year notes and March 25 for five-year notes. Separately, the Federal Reserve Board reported that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 5.42% last week from 5.28% the previous week.