T-Bill Interest Rates Climb to 7-Week High

The Treasury Department sold $7.51 billion in three-month bills at a discount rate of 4.44%, up from 4.42% last week. An additional $7.5 billion was sold in six-month bills at a rate of 4.47%, up from 4.42%. The rates were the highest since Dec. 28, when three-month bills sold for 4.52% and the six-month rate was 4.53%. 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 4.64% for a six-month bill selling for $9,774. An auction of two-year notes is tentatively scheduled for Feb. 24. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills rose to 4.67% last week, from 4.61% the previous week.