WASHINGTON - Interest rates on short-term Treasury bills were mixed in yesterday's auction, with rates on three-month bills rising and rates on six-month bills falling to the lowest level in more than three years.
The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 2.250 percent, up from 2.230 percent last week. Another $22 billion in six-month bills was auctioned at a discount rate of 2.080 percent, down from 2.160 percent last week.
The three-month rate was the highest since Jan. 28, when three-month bills averaged 2.335 percent. The six-month rate was the lowest since these bills averaged 2.040 percent on Oct. 25, 2004.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,943.13, while a six-month bill sold for $9,894.84.
Separately, the Federal Reserve said that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 2.08 percent last week from 2.23 percent the previous week.