3-Month T-Bill Rate Up, 6-Month Rate Down

The Treasury Department sold $8.5 billion in three-month bills at a discount rate of 6.010%, up from 5.960% last week. An additional $7.5 billion was sold in six-month bills at a rate of 6.010%, down from 6.015% last week. The new discount rates understate the actual return to investors--6.187% for three-month bills, with a $10,000 bill selling for $9,848.10, and 6.284% for a six-month bill selling for $9,696.20. Separately, the Federal Reserve said that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 6.11% last week from 6.09% the previous week.