Rates on short-term T-bills mixed in auction
From Times Wire Services
The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 4.955%, unchanged from last week. An additional $15 billion in six-month bills was auctioned at 4.955%, down from 4.98% last week.
The new discount rates understate the actual return to investors -- 5.088% for three-month bills, with a $10,000 bill selling for $9,874.75, and 5.153% for a six-month bill selling for $9,749.50.
Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, edged up to 5.03% last week from 5.0% the previous week.
