Short-Term T-Bill Rates at Highest in a Month

Interest rates on short-term Treasury securities rose at auction to the highest level in about a month. The Treasury Department sold $7.51 billion in three-month bills at a discount rate of 4.34%, up from 4.23% last week. An additional $7.51 billion was sold in six-month bills at a rate of 4.41%, up from 4.37%. The three-month rate was the highest since March 29, when the bills sold for 4.38%. The six-month rate was the highest since March 22, when the rate was 4.42%. The new discount rates understate the actual return to investors--4.46% for three-month bills, with a $10,000 bill selling for $9,890.40, and 4.59% for a six-month bill selling for $9,777.10. The next auction of two-year notes is Wednesday. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills rose to 4.7% last week from 4.67%.