Short-Term Rates Highest in a Month

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 0.92%. An additional $16 billion in six-month bills was auctioned at 1.02%.

The three-month rate was up from 0.885% last week and was the highest since Dec. 1, when the bills averaged 0.925%. The six-month rate was up from 0.995% last week and also was the highest since Dec. 1, when it was 1.03%.

The rates understate the actual return to investors -- 0.939% for three-month bills, with a $10,000 bill selling for $9,976.70, and 1.043% for a six-month bill selling for $9,948.40.

In a separate report, the Federal Reserve said the average yield for one-year, constant-maturity Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 1.29% last week from 1.28% the previous week.