Rates Rise on Short-Term Treasury Bills

The Treasury Department sold $9 billion in three-month bills at a discount rate of 4.99%, up from 4.78% last week. An additional $8 billion was sold in six-month bills at a rate of 5%, up from 4.93%. The new discount rates understate the actual return to investors: 5.14% for three-month bills, with a $10,000 bill selling for $9,873.90, and 5.22% for a six-month bill selling for $9,747.20. 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 5.42% last week from 5.34% the previous week.