3-Month T-Bill Rate Highest Since ’91

The Treasury Department sold $8.5 billion in three-month bills at a discount rate of 6.020%, up from 5.775% last week. An additional $7.5 billion was sold in six-month bills at a rate of 6.150%, up from 5.935%. The new discount rates understate the actual return to investors--6.199% for three-month bills, with a $10,000 bill selling for $9,847.80, and 6.435% for a six-month bill selling for $9,689.10. An auction of five-year notes is tentatively scheduled for today.