Rates on Short-Term T-Bills Rise in Auction
From Associated Press
The Treasury Department auctioned $18 billion in three-month bills at a discount rate of 3.47%, up from 3.46% last week. An additional $16 billion in six-month bills was auctioned at a discount rate of 3.705%, up from 3.68% last week.
The new discount rates understate the actual return to investors -- 3.549% for three-month bills, with a $10,000 bill selling for $9,912.29, and 3.828% for a six-month bill selling for $9,812.69.
Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 3.9% last week from 3.84% the previous week.
