BANKING

Treasury Bill Rates Rise: The Treasury sold $10.6 billion of three-month bills at an average discount rate of 5.04%, up from 4.99% last week. Another $10.6 billion of new six-month bills was sold at an average discount rate of 5.11%, up from 5.03%. The three-month bill rate was the highest since they sold for 5.11% on Oct 7. The six-month bill rate was the highest since they averaged 5.14% on Sept. 30. The new discount rates understate the actual return to investors--5.19% for three-month bills, with a $10,000 bill selling for $9,872.60, and 5.33% for a six-month bill selling for $9,741.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 5.11%3-month: 5.04%