Short-Term Treasury Rates Edge Higher

The Treasury Department sold $7.26 billion in three-month bills at an average discount rate of 4.98%, up from 4.97% last week. An additional $7.29 billion was sold in six-month bills at an average rate of 5%, up from 4.91%. The rates were the highest since Jan. 5, when the three-month bill sold for 5.12% and the six-month bill averaged 5.13%. The new discount rates understate the actual return to investors: 5.11% for three-month bills, with a $10,000 bill selling for $9,874.10, and 5.20% for a six-month bill selling for $9,747.50. 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 5.18% last week from 5.25% the previous week.