Interest Rates Mixed in Treasury Auction

The Treasury Department sold $19 billion in three-month bills at a discount rate of 0.92%, unchanged from the previous week. An additional $17 billion in six-month bills was sold at 0.99%, down from 1%.

The six-month rate was the lowest since Jan. 26, when the rate was 0.955%.

The new discount rates understate the actual return to investors -- 0.939% for three-month bills, with a $10,000 bill selling for $9,976.70, and 1.011% for a six-month bill selling for $9,950.00.

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 1.28% last week from 1.25% the previous week.