High Rates for One-Year T-Bills: Interest rates...

High Rates for One-Year T-Bills: Interest rates on 52-week Treasury bills rose in this week’s auction to the highest level in four years. The Treasury Department sold $9 billion of the bills at an average discount rate of 8.68%, up from 8.59% at the last auction on Feb. 14. The rates were the highest since March 14, 1985, when the one-year bills sold for 9.24%. The new discount rate understates the actual return to investors--9.43%, with a $10,000 bill selling for $9,122.40.