Interest Rates Rise in T-Bill Auction
The Treasury Department sold $17 billion in three-month bills at a discount rate of 1.150%, up from 1.115% last week. An additional $17 billion was sold in six-month bills at a rate of 1.150%, up from 1.110%.
The new discount rates understate the actual return to investors -- 1.174% for three-month bills, with a $10,000 bill selling for $9,970.90, and 1.175% for a six-month bill selling for $9,941.90.
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, jumped to 1.32% last week from 1.16% the previous week.