Treasury bill rates mixed

WASHINGTON -- Interest rates on short-term Treasury bills were mixed in yesterday's auction with three-month bills declining and six-month bills rising to the highest level since mid-August.

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 4.955 percent, down from 4.975 percent last week. Another $15 billion in six-month bills was auctioned at a discount rate of 4.980 percent, up from 4.955 percent last week.

The three-month rate was the lowest since they averaged 4.940 percent on Oct. 16. The six-month rate was the highest since Aug. 14.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,874.75; a six-month bill sold for $9,748.23.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 5.00 percent last week from 5.07 percent the previous week.