Rates on Short-Term T-Bills Mixed in Auction
From the Associated Press
The Treasury Department auctioned $14 billion in three-month bills at a discount rate of 4.635%, up from 4.6% last week. An additional $13 billion in six-month bills was auctioned at a discount rate of 4.735%, down from 4.75% last week.
The new discount rates understate the actual return to investors -- 4.755% for three-month bills, with a $10,000 bill selling for $9,882.84, and 4.919% for a six-month bill selling for $9,760.62.
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, edged down to 4.9% last week from 4.91% a week earlier.
