Rates Mixed in Treasury Bill Auction

The Treasury Department sold $19 billion in three-month bills at a discount rate of 2.21%, up from 2.195% last week. It sold $17 billion in six-month bills at 2.38%, down from 2.395%.

The three-month rate was the highest since Oct. 1, 2001, when the bills sold for 2.32%. The six-month rate was the lowest since Nov. 22, when it was 2.365%.

The new rates understate the actual return to investors -- 2.253% for three-month bills, with a $10,000 bill selling for $9,944.14, and 2.442% for a six-month bill selling for $9,879.68.

In a separate report, the Federal Reserve said the average yield for one-year constant-maturity Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 2.62% last week from 2.6% the previous week.