Rates Mixed in Treasury Bill Sales

The Treasury Department sold $14 billion in three-month bills at a discount rate of 1.72%, down from 1.73% last week. An additional $15 billion was sold in six-month bills at a rate of 1.85%, up from 1.84%.

The three-month rate was the lowest since Dec. 10, when the bills sold for 1.675%. The six-month rate was the highest since Nov. 26 when the rate was 1.99%.

The new discount rates understate the actual return to investors--1.752% for three-month bills with a $10,000 bill selling for $9,956.50 and 1.893% for a six-month bill selling for $9,906.50.

In a separate report, the Federal Reserve said the average yield for one-year constant maturity Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 2.23% last week from 2.17% the previous week.