Treasury bill rates mixed in auction

WASHINGTON - Interest rates on short-term Treasury bills were mixed in auction yesterday, with rates on three-month bills falling to the lowest level in two months, while rates on six-month bills edged up.

The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.195 percent, down from 0.225 percent last week.

Another $29 billion in six-month bills was auctioned at a discount rate of 0.420 percent, up from 0.390 percent last week.

The three-month rate was the lowest since three-month bills averaged 0.150 percent on Jan. 26.

The six-month rate was the highest since these bills averaged 0.445 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 $9,995.07, while a six-month bill sold for $9,978.77.

That would equal an annualized rate of 0.198 percent for the three-month bills and 0.427 percent for the six-month bills.

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 0.59 percent last week, from 0.64 percent the previous week.