Rates Rise on Short-Term T-Bills
Associated Press
The Treasury Department sold $14 billion in three-month bills at a discount rate of 1.76%, up from 1.735% last week. An additional $13 billion was sold in six-month bills at 1.89%, up from 1.85%.
The new discount rates understate the actual return to investors--1.793% for three-month bills, with a $10,000 bill selling for $9,955.50, and 1.934% for six-month bills selling for $9,904.50.
In a separate report, the Federal Reserve said the average yield for one-year constant-maturity Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 2.28% last week from 2.24% the previous week.
