Short-Term T-Bill Rates Climb at Auction

The Treasury Department sold $7.5 billion in three-month bills at a discount rate of 4.535%, up from 4.520% last week. An additional $7.5 billion was sold in six-month bills at a rate of 4.520%, up from 4.490%. The new discount rates understate the actual return to investors--4.663% for three-month bills, with a $10,000 bill selling for $9,885.40, and 4.703% for a six-month bill selling for $9,771.50. An auction of two-year notes is tentatively scheduled for Wednesday. Separately, the Federal Reserve said that the average yield for one-year Treasury bills fell to 4.98% last week from 5.01% the previous week.