Treasury Bill Rates Are Mixed at Auction

The Treasury Department sold $7.51 billion in three-month Treasury bills at a discount rate of 4.60%, up from 4.59% last week. It sold $7.51 billion in six-month bills at a rate of 4.54%, down from 4.59%. The three-month rate is the highest since June 28, when the bills sold for 4.75%. The six-month rate is the lowest since May 10, when the rate was 4.51%. The new discount rates understate the actual return to investors--4.73% for three-month bills, with a $10,000 bill selling for $9,883.70, and 4.72% for a six-month bill selling for $9,770.50. Separately, the Federal Reserve reported that the average yield for one-year T-bills, the most popular index for making changes in adjustable-rate mortgages, fell to 5.06% last week from 5.11% the week before.