Short-Term Treasury Rates Mixed

Because of an editing error, information about Monday’s Treasury bill auction was incorrect in Tuesday’s Business section. The Treasury Department sold $7.5 billion in three-month bills at an average discount rate of 4.97%, up from 4.96% last week and the highest since 4.98% on Oct. 14. An additional $7.5 billion was sold in six-month bills at an average rate of 5.08%, down from 5.15% last week and the lowest since 5.01% on Oct. 6. The discount rates understate the actual return to investors: 4.98% for three-month bills, with a $10,000 bill selling for $9,874.40, and 5.07% for a six-month bill selling for 9,743.20. In a separate report, the Federal Reserve Board said the average yield for the one-year Treasury bills fell to 5.33% last week from 5.52% the previous week. The next auction of five-year notes will be today.