Rates on Treasury Securities Mixed

The Treasury Department sold $5.22 billion in three-month bills at an average discount rate of 5.080%, up from 5.010% last week. An additional $7.26 billion was sold in six-month bills at an average rate of 5.160%, down from 5.170%. The three-month rate was the highest since March 2, when the bills sold for 5.120%. The six-month rate was the lowest since May 4, when the average was 5.110%. The new discount rates understate the actual return to investors--5.217% for three-month bills, with a $10,000 bill selling for $9,871.60, and 5.373% for a six-month bill selling for $9,739.10. Upcoming auctions are scheduled tentatively for May 27 for two-year notes and for May 28 for five-year notes. Separately, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 5.46% last week from 5.43% the previous week.