Short-Term Treasury Rates Rise

The Treasury Department sold $11.1 billion in three-month bills at an average discount rate of 5.12%, up from 4.97% last week. An additional $11 billion was sold in six-month bills at an average rate of 5.13%, up from 5.08%. The three-month bills’ rate was the highest since they sold for 5.17% on Aug. 11. The six-month bills’ rate was the highest since they averaged 5.15% on Oct. 20. 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 5.34% for a six-month bill selling for $9,740.70. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills fell to 5.35% last week from 5.53% the previous week.