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 3.785%, up from 3.630% last week. An additional $16 billion in six-month bills was auctioned at a discount rate of 4.015%, up from 3.950% last week.
The new discount rates understate the actual return to investors -- 3.875% for three-month bills, with a $10,000 bill selling for $9,904.32 and 4.155% for a six-month bill selling for $9,797.02.
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 4.14% last week from 4.08% the previous week.
