Rates on Short-Term T-Bills Mixed in Auction

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 2.965%, up from 2.935% last week. An additional $15 billion in six-month bills was auctioned at a discount rate of 3.06%, down from 3.08% last week.

The new discount rates understate the actual return to investors -- 3.029% for three-month bills with a $10,000 bill selling for $9,925.05 and 3.151% for a six-month bill selling for $9,845.30.

Separately, the Federal Reserve said the average yield for one-year Treasury bills edged down to 3.28% last week from 3.32% the previous week.