T-Bill Rates Highest in More Than 3 Years
The Treasury Department auctioned $19 billion in three-month bills at a discount rate of 2.075%. It auctioned $17 billion in six-month bills at 2.28%.
The three-month rate was up from 2.045% last week and was the highest since Oct. 22, 2001, when the bills averaged 2.17%. The six-month rate was up from 2.26% last week and was the highest since Oct. 1, 2001, when it was 2.325%.
The new rates understate the actual return to investors -- 2.115% for three-month bills, with a $10,000 bill selling for $9,947.55, and 2.339% for a six-month bill selling for $9,884.73.
In a separate report, the Federal Reserve said the average yield for one-year Treasury bills rose to 2.47% last week from 2.35% the previous week.