Short-Term Rates Mixed in T-Bill Auction

The Treasury Department sold $19 billion in three-month bills at a discount rate of 2.275%, up from 2.225% last week. It sold an additional $17 billion in six-month bills at 2.56%, unchanged from last week’s auction.

The new rates understate the actual return to investors -- 2.32% for three-month bills, with a $10,000 bill selling for $9,942.49, and 2.63% for a six-month bill selling for $9,870.58.

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 2.77% last week from 2.71% the previous week.