Short-Term Rates Mixed in Treasury Auction

The Treasury Department auctioned $20 billion in three-month bills at a discount rate of 4.375%, unchanged from last week. An additional $17 billion in six-month bills was auctioned at 4.5%, up from 4.435%.

The discount rates understate the actual return to investors -- 4.485% for three-month bills, with a $10,000 bill selling for $9,889.41, and 4.669% for a six-month bill selling for $9,772.50.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 4.6% last week from 4.5% the previous week.