Rates mixed in auction of Treasury bills
From the Associated Press
The Treasury Department auctioned $19 billion in three-month bills at a discount rate of 5.01%, unchanged from last week. An additional $15 billion in six-month bills was auctioned at a discount rate of 4.955%, down from 4.98% last week.
The new discount rates understate the actual return to investors -- 5.145% for three-month bills, with a $10,000 bill selling for $9,873.36, 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, fell to 5.06% last week from 5.1% the previous week.
