THE ECONOMY

Treasury Bill Rates Are Mixed: Interest rates on short-term Treasury securities were mixed at auction. The Treasury Department sold $10.47 billion in three-month bills at an average discount rate of 5.59%, up from 5.58% last week. Another $10.44 billion was sold in six-month bills at an average discount rate of 5.71%, down from 5.76% last week. The three-month bill rate was the highest since they sold for 5.61% on June 17. The six-month bill rate was the lowest since 5.65% on May 28. The new discount rates understate the actual return to investors--5.76% for three-month bills, with a $10,000 bill selling for $9,860.30, and 5.98% for a six-month bill selling for $9,712.90. The average yield for one-year bills, the most popular index for making changes in adjustable rate mortgages, fell to 6.36% last week, down from 6.37%.

T-Bill Auction 6-month: 5.71% 3-month: 5.59%