Rates for 3-Month, 6-Month T-Bills Rise

The Treasury Department sold $5.77 billion in three-month bills at an average discount rate of 5.04%, up from 4.96% last week. An additional $7.26 billion was sold in six-month bills at an average rate of 5.13%, up from 5%. The three-month rate is the highest since March 30, when the bills sold for 5.05%. The six-month rate is the highest since Dec. 29, when the average was 5.29%. The new discount rates understate the actual return to investors--5.17% for three-month bills, with a $10,000 bill selling for $9,872.70, and 5.34% for a six-month bill selling for $9,740.70. Coming auctions are tentatively scheduled for April 28 for two-year notes and April 29 for five-year notes. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 5.30% last week from 5.36% the week before.