T-Bill Rates Climb to Two-Week High

Interest rates on short-term Treasury securities rose to their highest level since Aug. 11. The Treasury Department sold $11.9 billion in three-month bills at an average discount rate of 5.12%, up from 5.08% last week. An additional $12 billion was sold in six-month bills at an average rate of 5.14%, up from 5.12%. The discount rates understate the actual return to investors: 5.26% for a three-month bill, with a $10,000 bill selling for $9,869.20, and 5.35% for a six-month bill selling for $9,740.10. Meanwhile, the Federal Reserve Board said the average yield for one-year Treasury bills fell to 5.54% last week from 5.59% the previous week. The next auction of two-year notes will be today; five-year notes will be auctioned Wednesday.