Interest rates on short-term Treasury bills rose.

The Treasury Department sold $8.02 billion in three-month bills at an average discount rate of 5.40%, up from 5.35% last week. Another $8.02 billion was sold in six-month bills at an average discount rate of 5.46%, up from 5.39% last week. The rates were the highest since Nov. 10, when three-month bills sold for 5.41% and six-month bills averaged 5.54%. The new discount rates understate the actual return to investors--5.55% for three-month bills, with a $10,000 bill selling for $9,863.50, and 5.69% for six-month bills selling for $9,724. The discount rate reflects the price discount received when government securities are purchased at less than face value.