Rates on T-Bills Mixed at Weekly Auction

The Treasury Department sold $12billion in three-month bills at a discount rate of 1.82%, down from 1.84% last week. An additional $12billion was sold in six-month bills at 2.11%, up from 2.07%.

The three-month rate was the lowest since March 4, when the bills sold for 1.76%. The six-month rate was the highest since Oct. 22, when it was 2.13%.

The new discount rates understate the actual return to investors--1.85% for three-month bills, with a $10,000 bill selling for $9,954, and 2.16% for a six-month bill selling for $9,893.30.

In a separate report, the Federal Reserve said the average yield on one-year constant-maturity Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 2.66% last week from 2.58% the week before.