Rates Mixed on Short-Term Treasury Bills

The Treasury Department sold $11 billion in three-month bills at a discount rate of 6.080%, up from 6.075% last week. An additional $10 billion was sold in six-month bills at a rate of 5.990%, down from 6.055%. The new discount rates understate the actual return to investors--6.261% for three-month bills with a $10,000 bill selling for $9,846.30 and 6.262% for a six-month bill selling for $9,697.20. In a separate report, the Federal Reserve said that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable rate mortgages, dipped to 5.98% last week from 6.06% the previous week. The next auction of two-year notes will be Oct. 25.