Short-Term Treasury Bill Rates Climb

The Treasury Department sold $9 billion in three-month bills at a discount rate of 4.780%, up from 4.730% last week. An additional $8 billion was sold in six-month bills at a rate of 4.930%, up from 4.870%. The three-month rate is the highest since Aug. 30, when the bills sold for 4.875%. The six-month rate is the highest since Sept. 7, when the rate was 4.950%. The new discount rates understate the actual returns to investors--4.918% for three-month bills, with a $10,000 bill selling for $9,879.20, and 5.139% for a six-month bill selling for $9,750.80. 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 sharply to 5.34% last week from 5.24% the previous week.