Treasury Bill Rates Rise: Interest rates on...

Treasury Bill Rates Rise: Interest rates on short-term Treasury securities rose at the latest auction to the highest level in two weeks. The Treasury Department sold $7.2 billion of new three-month bills at an average discount rate of 8.69%, up from 8.65% last week. Another $7.2 billion of new six-month bills was sold at an average discount rate of 8.76%, up from 8.66% last week. The rates were the highest since three-month bills sold for 8.73% on Feb. 27, and six-month bills averaged 8.77% on Feb. 27. The new discount rates understate the actual return to investors--9.01% for three-month bills, with a $10,000 bill selling for $9,780.30 and 9.29% for six-month bills selling for $9,557.10.