WASHINGTON -- Interest rates on short-term Treasury bills were mixed in yesterday's auction, with the rates on six-month bills increasing while the rates on three-month bills fell to the lowest level since mid-June.
The Treasury Department auctioned $18 billion in three-month bills at a discount rate of 4.820 percent, down from 4.855 percent last week. Another $16 billion in six-month bills was auctioned at a discount rate of 4.935 percent, up from 4.920 percent last week.
The three-month rate was the lowest since three-month bills averaged 4.800 percent on June 12. The six-month rate was the highest since those bills were at 4.970 percent on Aug. 28.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,878.16, while a six-month bill sold for $9,750.51.
Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged down to 5.02 percent last week, from 5.03 percent the previous week.