Rates Mixed in Treasury Bill Auction

The Treasury Department sold $16 billion in three-month bills at a discount rate of 0.925%, down from 0.930% last week. An additional $16 billion was sold in six-month bills at a rate of 1.03%, up from 1.01%.

The new discount rates understate the actual return to investors -- 0.943% for three-month bills with a $10,000 bill selling for $9,976.60 and 1.053% for a six-month bill selling for $9,947.90.

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, rose to 1.35% last week from 1.30% a week ago.