Rates on Treasury Bills Rise at Weekly Auction
From the Associated Press
The Treasury Department auctioned $15 billion in three-month bills at a discount rate of 4.83%, up from 4.8% last week. An additional $14 billion in six-month bills was auctioned at a discount rate of 5.055%, up from 4.925% last week.
The new discount rates understate the actual return to investors -- 4.958% for three-month bills, with a $10,000 bill selling for $9,877.91, and 5.26% for a six-month bill selling for $9,744.44.
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 5.13% last week from 5.04% the previous week.
