WASHINGTON - Interest rates on short-term Treasury bills were mixed in yesterday's auction with six-month rates rising while three-month rates dropped to the lowest level in more than three years.
The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 2.160 percent, down from 2.200 percent last week. Another $22 billion in six-month bills was auctioned at a discount rate of 2.070 percent, up from 2.040 percent last week.
The three-month rate was the lowest since three-month bills averaged 2.155 percent on Nov. 22, 2004. The six-month rate was the highest since these bills averaged 2.080 percent two weeks ago.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,945.40 while a six-month bill sold for $9,895.35.
Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 2.10 percent last week from 2.04 percent the previous week.