Treasury Bill Rates Climb at Auction

The Treasury Department sold $8 billion in three-month bills at a discount rate of 4.695%, up from 4.535% last week. An additional $8 billion was sold in six-month bills at a rate of 4.750%, up from 4.520%. The three-month rate is the highest since June 28, when the bills sold for 4.750%. The six-month rate also is the highest since June 28, when it was 4.960%. The new discount rates understate the actual return to investors: 4.831% for three-month bills, with a $10,000 bill selling for $9,881.30, and 4.947% for a six-month bill selling for $9,759.90. 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, rose to 5.07% last week from 4.98% the week before.