Yields Edge Higher on Short-Term T-Bills

The Treasury Department sold $8 billion in three-month bills at a discount rate of 4.39%, up from 4.32% last week. An additional $8 billion was sold in six-month bills at a rate of 4.39%, up from 4.38%. The new discount rates understate the actual return to investors: 4.49% for three-month bills, with a $10,000 bill selling for $9,889.20, and 4.55% for a six-month bill selling for $9,778.10. Auctions are scheduled tentatively for Dec. 29 for two-year notes and Feb. 9 for five-year notes. Separately, the Federal Reserve said the average yield for one-year Treasury bills rose last week to 4.49% from 4.46% the previous week.