T-Bills at Highest Rate in Two Weeks

From Associated Press

The Treasury Department auctioned $15 billion in three-month bills at a discount rate of 1.205%, and $15 billion in six-month bills were auctioned at a discount rate of 1.245%.

The three-month rate was up from 1.190% last week and was the highest since three-month bills averaged 1.410% on Nov. 4. The six-month rate was up from 1.225% last week and was the highest since 1.395% on Nov. 4.

The new discount rates understate the actual return to investors -- 1.227% for three-month bills with a $10,000 bill selling for $9,969.50 and 1.269% for a six-month bill selling for $9,937.10.

The Federal Reserve also reported that the average yield for one-year Treasury bills was unchanged last week at 1.46%.