3-Month T-Bill Rate Up, 6-Month Rate Down

The Treasury Department auctioned $9.5 billion in three-month bills at a discount rate of 6.1%, up slightly from 6.09% last week. Another $8.5 billion in six-month bills was auctioned at a discount rate of 6.06%, down from 6.12% last week. The new discount rates understate the actual return to investors--6.28% for three-month bills with a $10,000 bill selling for $9,845.90 and 6.34% for a six-month bill selling for $9,693.60. An auction of five-year notes is scheduled for today, and an auction of two-year notes is scheduled tentatively for Aug. 30. In a separate report, the Federal Reserve said the average yield on one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 6.09% from 6.06%.