The version of /usr/sbin/setclock distributed with RedHat 6.1 (timeconfig-3.0-5) interprets the values in /etc/sysconfig/clock slightly differently from the rest of the system. Whereas /etc/rc.d/rc.sysinit checks whether the variables $UTC or $ARC are set to "yes" or "true", /usr/sbin/setclock only checks for the value "true". This problem is compounded by the fact that the RH install process sets $UTC to "yes" in /etc/sysconfig/clock (if a UTC hardware clock is requested). So the default install will read the value from the hardware clock at system startup as UTC, but when /usr/sbin/setclock is used to reset the hardware clock it may fail to use UTC.
Fixed in timeconfig-3.0.1-1.