Interest Rates Mixed in T-Bill Auction

Interest rates on short-term Treasury securities were mixed in the latest auction.

The Treasury Department sold $11 billion in three-month bills at a discount rate of 1.79%, down from 1.82% last week. An additional $11 billion was sold in six-month bills at a rate of 2.11%, unchanged from the week before.

The three-month rate was the lowest since March 4, when the bills sold for 1.76%.

The new discount rates understate the actual return to investors--1.821% for three-month bills with a $10,000 bill selling for $9,954.30 and 2.163% for a six-month bill selling for $9,893.30.

In a separate report, the Federal Reserve said the average yield for one-year constant maturity Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 2.70% last week from 2.66% the previous week.