Rates on Short-Term T-Bills Climb in Auction
From Associated Press
The Treasury Department auctioned $18 billion in three-month bills at a discount rate of 3.63%, up from 3.525% last week. An additional $16 billion in six-month bills was auctioned at a discount rate of 3.95%, up from 3.87% last week.
The new discount rates understate the actual return to investors -- 3.714% for three-month bills, with a $10,000 bill selling for $9,908.24 and 4.086% for a six-month bill selling for $9,800.31.
In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 4.08% last week from 3.97% the previous week.
