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Short-term T-bill rates are mixed

WASHINGTON -- Interest rates on short-term Treasury bills were mixed in auction yesterday, with three-month bills rising to the highest level in more than two months while six-month bills were unchanged.

The Treasury Department auctioned $15 billion in three-month bills at a discount rate of 4.790 percent, up from 4.685 percent last week.

Another $14 billion in six-month bills was auctioned at a discount rate of 4.810 percent, the same as last week.

The three-month rate was the highest since three-month bills averaged 4.835 percent on April 23.

The six-month rate of 4.810 for the past two weeks was the highest since six-month bills averaged 4.815 percent on May 7.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,878.92 while a six-month bill sold for $9,756.83.

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 4.94 percent last week from 4.95 percent the previous week.

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