Treasury Auction: Interest rates on short-term Treasury...

Treasury Auction: Interest rates on short-term Treasury securities were mixed in Monday’s auction. The Treasury Department sold $10 billion in three-month bills at an average discount rate of 6.52%, unchanged for the last three weeks. Another $10 billion was sold in six-month bills at an average discount rate of 6.51%, up from 6.48% last week. The rate for three-month bills was the lowest since they sold for 6.51% on June 20, 1988. For six-month bills, the rate was the highest since it averaged 6.57% last Dec. 21. The new discount rates understate the actual return to investors--6.72% for three-month bills, with a $10,000 bill selling for $9,835.20, and 6.82% for a six-month bill selling for $9,670.90. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 6.78% last week, down from 6.95% the previous week.

T-Bill Auction 3-month: 6.52% 6-month: 6.51%