Rates Are Mixed in T-Bill Auction

The Treasury Department sold $15 billion in three-month bills at a discount rate of 1.74%, up from 1.73% last week. An additional $15 billion in six-month bills was sold at a rate of 1.85%, down from 1.88%.

The three-month rate was the highest since April 1, when the bills sold for 1.79%. The six-month rate was the lowest since Feb. 19, when the rate was 1.83%.

The new discount rates understate the actual return to investors--1.773% for three-month bills with a $10,000 bill selling for $9,956, 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, dipped to 2.33% last week from 2.36% the previous week.