Rates on Short-Term T-Bills Hit 4-Year High

Interest rates on short-term Treasury bills rose in auction to the highest levels in more than four years.

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 3.495%, up from 3.460% last week. An additional $15 billion in six-month bills was auctioned at a discount rate of 3.705%, up from 3.690% last week.

The three-month rate was the highest since those bills averaged 3.550% on July 16, 2001. The six-month rate was the highest since averaging 3.860% on April 30, 2001.

Separately, the Federal Reserve said the average yield for one-year Treasury bills dipped to 3.88% last week from 3.89% the previous week.