Interest Rates Mixed in Treasury Bill Auction
From Associated Press
The Treasury Department sold $20 billion in three-month bills at a discount rate of 2.48%, up from 2.475% last week. An additional $17 billion was sold in six-month bills at a rate of 2.71%, unchanged from the previous week.
The new discount rates understate the actual return to investors -- 2.53% for three-month bills, with a $10,000 bill selling for $9,937.11, and 2.786% for a six-month bill selling for $9,862.99.
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 2.95% last week from 2.89% the previous week.
