Short-Term Interest Rates Highest in 5 Years

The Treasury Department auctioned $14 billion in three-month bills at a discount rate of 4.6%, up from 4.57% last week. An additional $13 billion in six-month bills was auctioned at 4.75%, up from 4.7% last week.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,883.72, and a six-month bill sold for $9,759.86.

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 4.91% last week from 4.85% the previous week.