Rates Are Mixed in Treasury Bill Auction

The Treasury Department sold $17 billion in three-month bills at a discount rate of 1.175%, unchanged from last week. An additional $16 billion was sold in six-month bills at a rate of 1.170%, down from 1.175%.

The new discount rates understate the actual return to investors -- 1.198% for three-month bills, with a $10,000 bill selling for $9,970.30, and 1.196% for a six-month bill selling for $9,940.90.

In a separate report, the Federal Reserve said the average yield for one-year constant maturity Treasury bills, the most popular index for making changes in adjustable-rate mortgages, dipped to 1.27% last week from 1.30% the previous week.