Rates on Short-Term Treasury Bills Rise

The Treasury Department sold $7.55 billion in three-month bills at an average discount rate of 5.16%, up from 5.12% last week. An additional $7.5 billion was sold in six-month bills, also at an average rate of 5.16%, up from 5.13%. 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 5.19% on Sept. 2. The new discount rates understate the actual return to investors: 5.299% for three-month bills, with a $10,000 bill selling for $9,869.60, and 5.373% for a six-month bill selling for $9,739.10. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills rose to 5.44% last week from 5.35% the previous week.