Interest Rates Mixed in Treasury Auction

The Treasury Department sold $18 billion in three-month bills at a discount rate of 1.175%, up from 1.16% last week. An additional $17 billion was sold in six-month bills at a rate of 1.175%, down from 1.18%.

The three-month rate was the highest since Jan. 13, when the bills sold for 1.18%. The six-month rate was the lowest since Feb. 10, when the rate was 1.165%.

The new discount rates understate the actual return to investors -- 1.195% for three-month bills, with a $10,000 bill selling for $9,970.30, and 1.198% for a six-month bill selling for $9,940.60.

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, was unchanged last week at 1.3%.