Short-Term Rates Rise in Treasury Auction
From the Associated Press
The Treasury Department auctioned $14 billion in three-month bills at a discount rate of 4.57%, up from 4.535% last week. An additional $13 billion in six-month bills was auctioned at 4.7%, up from 4.67% last week.
The rates understate the actual return to investors -- 4.688% for three-month bills, with a $10,000 bill selling for $9,884.48, and 4.881% for a six-month bill selling for $9,762.39.
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 4.85% last week from 4.82% the previous week.
