Interest Rates Rise in T-Bill Auction
From Associated Press
The Treasury Department sold $15 billion in three-month bills at a discount rate of 0.895%, up from 0.88% last week. An additional $17 billion was sold in six-month bills at a rate of 0.95%, up from 0.93%.
Both the three-month and six-month rates were the highest since June 9, when the bills sold for 1.005% and 0.98%, respectively.
The new discount rates understate the actual return to investors -- 0.911% for three-month bills, with a $10,000 bill selling for $9,977.40, and 0.97% for a six-month bill selling for $9,952.
Also, 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, edged up to 1.1% last week from 1.08% the previous week.
