Short-Term Rates Mixed in T-Bill Auction

The Treasury Department sold $18 billion in three-month bills at a discount rate of 0.945%, up from 0.93% last week. An additional $15 billion was sold in six-month bills at 0.99%, unchanged from the previous week.

The new rates understate the actual return to investors -- 0.961% for three-month bills, with a $10,000 bill selling for $9,976.10, and 1.008% for a six-month bill selling for $9,950.

In a separate report, the Federal Reserve said the average yield for one-year constant-maturity Treasury bills, a popular index for making changes in adjustable-rate mortgages, dipped to 1.17% last week from 1.18% the previous week.