Rates Mixed on 3-, 6-Month Treasury Bills

The Treasury Department sold $9.5 billion in three-month bills at a discount rate of 5.960%, up from 5.945% last week. An additional $8.5 billion was sold in six-month bills at a rate of 5.935%, down from 5.955%. The new discount rates understate the actual return to investors--6.137% for three-month bills, with a $10,000 bill selling for $9,849.30, and 6.203% for a six-month bill selling for $9,700. 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 6.14% last week from 6.2% the previous week.