Interest Rates Rise on Short-Term T-Bills

The Treasury Department sold $14 billion in three-month bills at a discount rate of 3.36%, up from 3.35% last week. An additional $13 billion was sold in six-month bills at a rate of 3.31%, up from 3.29%.

The new discount rates understate the actual return to investors--3.434% for three-month bills, with a $10,000 bill selling for $9,915.10, and 3.412% for a six-month bill selling for $9,832.70.

In a separate report, the Federal Reserve said the average yield for one-year constant maturity Treasury bills edged down to 3.44% last week, from 3.45% the previous week.