Treasury Bill Auction Shows Mixed Results
From Associated Press
The Treasury Department auctioned $18 billion in three-month bills at a discount rate of 3.94%, up from 3.91% last week. An additional $16 billion in six-month bills brought a discount rate of 4.155%, down from 4.195% last week.
The discount rates understate the actual return to investors -- 4.034% for three-month bills, with a $10,000 bill selling for $9,901.50, and 4.303% for a six-month bill selling for $9,791.10.
Separately, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 4.36% last week from 4.35% the previous week.
