3-Month T-Bill Rates Up, 6-Month Bills Down

The Treasury Department sold $6.51 billion in three-month bills at a discount rate of 4.380%, up from 4.375% last week. An additional $7.51 billion was sold in six-month bills at a rate of 4.34%, down from 4.42%. The three-month rate was the highest since March 15, when the bills sold for 4.47%. The six-month rate was the lowest since Jan. 25, when the rate was 4.28%. The new discount rates understate the actual return to investors: 4.50% for three-month bills, with a $10,000 bill selling for $9,889.30, and 4.51% for a six-month bill selling for $9,780.60. 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 4.75% last week from 4.74% the previous week.