Short-Term Treasury Rates Rise

The Treasury Department sold $11.6 billion in three-month bills at an average discount rate of 5.12%, up from 4.94% last week. An additional $12 billion was sold in six-month bills at an average rate of 5.14%, up from 5.05%. The three-month rate is the highest since the bills sold for 5.17% on May 19. The six-month rate is the highest since the bills sold for 5.20% on June 9. The new discount rates understate the actual return to investors: 5.26% for three-month bills, with a $10,000 bill selling for $9,870.60, and 5.35% for a six-month bill selling for $9,738.70. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills was 5.65% last week, unchanged from the previous week. The next auction of 52-week bills will be July 17.