Interest rates on short-term Treasury securities inched...

Interest rates on short-term Treasury securities inched higher. The Treasury Department sold $6.6 billion in three-month bills at an average discount rate of 6.12%, up from 5.97% at last week’s auction. Another $6.6 billion was sold in six-month bills at an average discount rate of 6.16%, up from 6.12% last week. The rates on the three-month bills were the highest since July 30, when they sold for 6.14%. The rates on the six-month bills were the highest since July 31, when they sold for 6.18%. The new discount rates understate the actual return to investors--6.32% for three-month bills, with a $10,000 bill selling for $9,843.60 and 6.46% for six-month bills selling for $9,688.60. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable rate home mortgages, rose to 7.01% last week after averaging 6.93% the week before.