Rates Mixed on Short-Term T-Bills

The Treasury Department sold $8 billion in three-month bills at a discount rate of 4.45%, up from 4.40% last week. Another $8 billion was sold in six-month bills at a rate of 4.43%, the same as last week. The three-month rate is the highest since Nov. 9, when the bills sold for 4.47%. The new discount rates understate the actual return to investors--4.56% for three-month bills, with a $10,000 bill selling for $9,888.80, and 4.59% for a six-month bill selling for $9,777.30. The Federal Reserve Board reported separately that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 4.54% last week from 4.52% the week before.