3-Month T-Bill Rate Down, 6-Month Rate Up

The Treasury Department auctioned $9.5 billion in three-month bills at a discount rate of 6.09%. An additional $8.5 billion in six-month bills was auctioned at a discount rate of 6.075%. The three-month rate was down from 6.095% last week and was the lowest since three-month bills averaged 6.01% on July 24. The six-month rate was up from 6.06% last week and was the highest since 6.115% on July 31. The new discount rates understate the actual return to investors--6.269% for three-month bills, with a $10,000 bill selling for $9,846.10, and 6.354% for a six-month bill selling for $9,692.90. An auction of two-year notes is scheduled tentatively for Aug. 23.