Rates on Short-Term T-Bills Mixed in Auction

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 3.135%, down from 3.145% last week. An additional $15 billion in six-month bills was auctioned at a discount rate of 3.355%, up from 3.325% last week.

The new discount rates understate the actual return to investors -- 3.204% for three-month bills, with a $10,000 bill selling for $9,920.75, and 3.46% for a six-month bill selling for $9,830.39.

Separately, the Federal Reserve said the average yield for one-year Treasury bills rose to 3.52% last week from 3.46% the previous week.