Short-Term Rates Up in T-Bill Auction
From Associated Press
The Treasury Department sold $18 billion in three-month bills at a discount rate of 1.33%, up from 1.315% last week. It sold $16 billion in six-month bills at 1.65%, up from 1.63%.
The new rates understate the actual return to investors -- 1.352% for three-month bills, with a $10,000 bill selling for $9,966.40, and 1.687% for a six-month bill selling for $9,916.60.
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 2.07% last week from 2.04% the previous week.
