Treasury Bill Yields Rise in Latest Auction

The Treasury Department sold $14 billion in three-month bills at a discount rate of 1.73%, up from 1.675% last week. An additional $15 billion was sold in six-month bills at a rate of 1.84%, up from 1.765%.

1.99%.

The new discount rates understate the actual return to investors--1.76% for three-month bills with a $10,000 bill selling for $9,956.30 and 1.883% for a six-month bill selling for $9,907.

In a separate report, the Federal Reserve said that the average yield for one-year constant maturity Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 2.17% last week from 2.21% the previous week.