Rates on 3-, 6-month T-bills decline in auction

The Treasury Department auctioned $20 billion in three-month bills at a discount rate of 4.93%, down from 4.965% last week. An additional $16 billion in six-month bills was auctioned at a discount rate of 4.91%, down from 4.92% last week.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,875.38, and a six-month bill sold for $9,751.77.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 4.93% last week from 4.92% the previous week.