Interest Rates Rise in Treasury Bill Auction
From Associated Press
The Treasury Department sold $15 billion in three-month bills at a discount rate of 1.165%, up from 1.135% last week. An additional $15 billion was sold in six-month bills at a rate of 1.175%, up from 1.135%.
The new discount rates understate the actual return to investors -- 1.186% for three-month bills, with a $10,000 bill selling for $9,970.60, and 1.202% for a six-month bill selling for $9,940.60.
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 1.25% last week from 1.19%.
