Short-Term T-Bill Rates Rise

The Treasury Department sold $13.1 billion in three-month bills at an average discount rate of 5.10%, up from 5.01% last week. Another $13.1 billion was sold in six-month bills at an average rate of 5.19%, up from 5.03%. The rates are the highest since Sept. 23, when three-month bills sold for 5.18% and six-month bills averaged 5.30%. The new discount rates understate the actual return to investors--5.24% for three-month bills with a $10,000 bill selling for $9,871.10, and 5.40% for a six-month bill selling for $9,737.60. In a separate report, the Federal Reserve Board said that the average yield for one-year Treasury bills rose to 5.60% last week from 5.47% the previous week. Two-year notes will be auctioned March 25, and five-year notes on March 26.