Yields on Short-Term Treasuries Edge Up

The Treasury Department sold $7.51 billion in three-month bills at a discount rate of 4.44%, up from 4.39% last week. An additional $7.5 billion was sold in six-month bills at a rate of 4.44%, up from 4.39%. The three-month rate was the highest since Nov. 23, when the bills sold for 4.45%. The six-month rate was the highest since Nov. 9, when the rate was 4.50%. The new discount rates understate the actual return to investors--4.55% for three-month bills with a $10,000 bill selling for $9,887.80, and 4.61% for a six-month bill selling for $9,775.50. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable rate mortgages, fell to 4.47% last week from 4.49% the week before.