Interest rates on short-term T-bills were mixed...

Interest rates on short-term T-bills were mixed at the latest auction. The Treasury sold $6.6 billion of new three-month bills at an average discount rate of 6.88%, up from 6.76% last week. Another $6.6 billion of new six-month bills was sold at an average discount rate of 7.09%, the same as last week. The three-month rate was the highest since Oct. 13, when the bills sold for 6.96%. The last time the rate on six-month bills was higher was on Oct. 19, when they averaged 7.21%. The discount rates understate the actual return to investors--7.10% for three-month bills, with a $10,000 bill selling for $9,826.10, and 7.45% for a six-month bill selling for $9,641.60. The discount rate reflects the price discount received when government securities are purchased at less than face value.