Rates Mixed on Short-Term T-Bills
Associated Press
The Treasury Department sold $11 billion in three-month bills at a discount rate of 3.630%, down from 3.660% last week. An additional $9 billion was sold in six-month bills at a rate of 3.640%, up from 3.620%.
The six-month rate was the highest since April 30 when the rate was 3.860%. The new discount rates understate the actual return to investors--3.716% for three-month bills, with a $10,000 bill selling for $9,908.20, and 3.759% for a six-month bill selling for $9,816.00.
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, fell to 3.76% last week from 3.90% the previous week.
