Interest Rates Mixed in T-Bill Auction

The Treasury Department sold $17 billion in three-month bills at a discount rate of 1.73%, unchanged from last week. An additional $15 billion was sold in six-month bills at a rate of 1.89%, down from 1.9%.

The new discount rates understate the actual return to investors--1.76% for three-month bills, with a $10,000 bill selling for $9,956.30, and 1.94% for a six-month bill selling for $9,903.90.

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, dipped to 2.38% last week from 2.4% the previous week.