Rates Are Mixed for Short-Term T-Bills

The Treasury Department sold $7.5 billion in three-month bills at a discount rate of 4.31%, up from 4.28% last week. An additional $7.51 billion was sold in six-month bills at a rate of 4.28%, down from 4.31%. The new discount rates understate the actual return to investors: 4.41% for three-month bills, with a $10,000 bill selling for $9,891.20 and 4.44% for a six-month bill selling for $9,783.60. An auction of two-year notes is scheduled for Wednesday. 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, fell to 4.49% last week from 4.51% the previous week.