Treasury Bills Are Mixed in Auction
From Bloomberg News/Associated Press
The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 3.440%, down from last week’s 3.495%. An additional $15 billion in six-month bills was auctioned at a discount rate of 3.745%, up from 3.715% last week.
The new discount rates understate the actual return to investors -- 3.518% for the three-month bills, with a $10,000 bill selling for $9,913.04. The return is 3.87% for the six-month bills, with a $10,000 bill selling for $9,810.67.
In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 3.88% last week from 3.82% the previous week.
