Treasury Bill Rates Mixed at Auction
(Associated Press)
The Treasury Department sold $6.5 billion in three-month bills at a discount rate of 4.66%, unchanged from last week, which is the lowest since July 26. An additional $7.5 billion was sold in six-month bills at a rate of 4.89%, down from 4.925%. The new discount rates understate the actual return to investors--4.794% for three-month bills, with a $10,000 bill selling for $9,882.20, and 5.097% for a six-month bill selling for $9,752.80. An auction of two-year notes is scheduled tentatively for Sept. 29. In a separate report, the Federal Reserve said that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 5.26% last week from 5.28% the previous week.
