Interest rates on short-term Treasury bills
were mixed in Monday's auction, with three-month bills declining
slightly and six-month bills rising.
The Treasury Department auctioned $9.5 billion in three-month
bills at a discount rate of 6.090 percent. Another $8.5 billion in
six-month bills was auctioned at a discount rate of 6.075 percent.
The three-month rate was down from 6.095 percent last week and
was the lowest since three-month bills averaged 6.010 percent on
July 24. The six-month rate was up from 6.060 percent last week and
was the highest since 6.115 percent on July 31.
The new discount rates understate the actual return to investors
-- 6.269 percent for three-month bills with a $10,000 bill selling
for $9,846.10 and 6.354 percent for a six-month bill selling for
In a separate report, the Federal Reserve said Monday that the
average yield for one-year Treasury bills, the most popular index
for making changes in adjustable rate mortgages, jumped to 6.17
percent last week from 6.09 percent the previous week.