Interest rates on short-term Treasury-bills shot up.

The Treasury Department sold $7.4 billion in new three-month bills at an average discount rate of 7.23%, up from 7.05% last week. Another $7.4 billion was sold in new six-month bills at an average discount rate of 7.28%, up from 7.11% last week. The rates were the highest since three-month bills sold for 7.24% on Nov. 18 and six-month bills averaged 7.3% on Nov. 4. The new discount rates understate the actual return to investors--7.47% on three-month bills and 7.66% for six-month bills. The discount rate reflects the price discount received when government securities are purchased at less than face value.