THE ECONOMY

T-Bill Rates Rise: The Treasury Department sold $13.5 billion in three-month bills at an average discount rate of 5.00%, up from 4.97% last week. Another $13.6 billion was sold in six-month bills at an average discount rate of 5.08%, up from 5.02%. The three-month bill rate was the highest since they sold for 5.03% on April 8. The six-month bill rate was also the highest since April 8, when they averaged 5.19%. The new discount rates understate the actual return to investors: 5.13% for three-month bills, with a $10,000 bill selling for $9,873.60, and 5.29% for a six-month bill selling for $9,743.20. In a separate report, the Federal Reserve Board said the average yield on one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 5.52% last week from 5.51% the previous week. Three- and 10-year notes are scheduled to be auctioned Wednesday; other auction dates have yet to be announced.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

T-Bill Auction (April 29)

6-month: 5.08%

3-month: 5.00%