Treasury Bill Rates Mixed at Auction

Interest rates on short-term Treasury securities were mixed at auction. The Treasury Department sold $8.5 billion in three-month bills at a discount rate of 5.68%, down from 5.69% last week. An additional $7.5 billion was sold in six-month bills at a rate of 5.955%, up from 5.92%. The three-month rate was the lowest since April 24, when the bills sold for 5.62%. The six-month rate was the highest since June 12, when the rate was 6.005%. The new discount rates understate the actual return to investors: 5.844% for three-month bills, with a $10,000 bill selling for $9,856.40, and 6.226% for a six-month bill selling for $9,698.90. The next 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 rose to 6.15% last week from 6.14% the previous week.