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 1.06%, up from 0.985% last week. It sold an additional $15 billion in six-month bills at 1.34%, up from 1.175%.
The three-month rate was the highest since June 2, when the bills sold for 1.11%. The six-month rate was the highest since Nov. 4, 2002, when it was 1.395%.
The new rates understate the actual return to investors -- 1.078% for three-month bills, with a $10,000 bill selling for $9,973.20, and 1.368% for a six-month bill selling for $9,931.90.
In a separate report, the Federal Reserve said the average yield for one-year, constant-maturity Treasury bills rose to 1.63% last week from 1.55% the previous week.
