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Rates mixed on short-term T-bills

WASHINGTON -- Interest rates on short-term Treasury securities were mixed in yesterday's auction.

The Treasury Department sold $19 billion in three-month bills at a discount rate of 0.920 percent, unchanged from the previous week. An additional $17 billion was sold in six-month bills at a rate of 0.990 percent, down from 1.000 percent.

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

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

In a separate report, the Federal Reserve said yesterday that 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 percent last week from 1.25 percent the previous week.

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