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 3.930%, up from 3.900% last week. An additional $16 billion in six-month bills was auctioned at a discount rate of 4.185%, up from 4.155% last week.
The new discount rates understate the actual return to investors -- 4.025% for three-month bills, with a $10,000 bill selling for $9,900.66, and 4.335% for a six-month bill selling for $9,788.43.
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 4.34% last week from 4.30% the previous week.
