Treasury Bill Rates Rise in Auction

The Treasury Department sold $13 billion in three-month bills at a discount rate of 2.200%, up from 2.180% last week. An additional $12 billion was sold in six-month bills at a rate of 2.16%, up from 2.15%.

The new discount rates understate the actual return to investors--2.243% for three-month bills with a $10,000 bill selling for $9,944.40 and 2.214% for a six-month bill selling for $9,890.80.

In a separate report, the Federal Reserve said the average yield for one-year constant maturity Treasury bills dipped to 2.39% last week from 2.40% the previous week.