Rates Mixed in Treasury Bill Auction
From Associated Press
The Treasury Department sold $17 billion in three-month bills at a discount rate of 0.89%, up from 0.885% last week. An additional $18 billion was sold in six-month bills at a rate of 0.94%, down from 0.95%.
The new discount rates understate the actual return to investors -- 0.907% for three-month bills, with a $10,000 bill selling for $9,977.50, and 0.96% for a six-month bill selling for $9,952.50.
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, rose to 1.07% last week from 1.02% the previous week.
