Treasury Bill Rates Rise at Auction
From Associated Press
The Treasury Department auctioned $19 billion in three-month bills at a discount rate of 3.850%, up from 3.785% last week. An additional $17 billion in six-month bills was auctioned at a discount rate of 4.065%, up from 4.015% last week.
The new discount rates understate the actual return to investors -- 3.942% for three-month bills, with a $10,000 bill selling for $9,902.68, and 4.208% for a six-month bill selling for $9,794.49.
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 4.19% last week from 4.14% the previous week.
