Interest Rates Mixed in T-Bill Auction
From Associated Press
The Treasury Department sold $16 billion in three-month bills at a discount rate of 0.945%, unchanged from last week. An additional $17 billion in six-month bills was sold at 1.025%, up from 0.98%.
The six-month rate was the highest since June 2, when the rate was 1.095%.
The new discount rates understate the actual return to investors -- 0.964% for three-month bills, with a $10,000 bill selling for $9,976.10, and 1.047% for a six-month bill selling for $9,948.20.
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 1.22% last week from 1.13% the previous week.
