Interest Rates Mixed in Treasury Auction

The Treasury Department sold $19 billion in three-month bills at a discount rate of 2.2%, down from 2.21% last week. It sold $17 billion in six-month bills at 2.425%, up from 2.38%.

The three-month rate was the lowest since Nov. 29, when the bills sold for 2.195%. The six-month rate was the highest since Sept. 17, 2001, when it was 2.57%.

The new rates understate the actual return to investors -- 2.243% for three-month bills, with a $10,000 bill selling for $9,944.39, and 2.489% for a six-month bill selling for $9,877.40.

In a separate report, the Federal Reserve said the average yield for one-year constant-maturity Treasury bills, a popular index for making changes in adjustable-rate mortgages, fell to 2.6% last week from 2.62% the previous week.