3-Month Treasury Rate Highest in 5 Years

The Treasury Department sold $9 billion in three-month bills at a discount rate of 5.64%, up from 5.510% last week and the highest rate since May 22, 1995. An additional $8 billion was sold in six-month bills at a rate of 5.765%, up from 5.76% and the highest rate since Feb. 7. The new discount rates understate the actual return to investors--5.818% for three-month bills, with a $10,000 bill selling for $9,857.40, and 6.038% for a six-month bill selling for $9,708.50. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills rose to 6.23% last week from 6.20% the previous week.