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YIELDS MIXED ON T-BILLS

Interest rate changes on short-term Treasury securities were mixed in Monday's auction.

The Treasury Department sold $10.0 billion in three-month bills at an average discount rate of 6.78 percent, down from 6.86 percent last week. Another $10 billion was sold in six-month bills at an average discount rate of 6.77 percent, up from 6.74 percent last week.

The new discount rates understate the actual return to investors -- 6.99 percent for three-month bills with a $10,000 bill selling for $9,828.60, and 7.11 percent for a six-month bill selling for $9,657.70.

In a separate report, the Federal Reserve said Monday that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable rate mortgages, fell to 7.08 percent last week, down from 7.24 percent the previous week.

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