Rates on 3-, 6-Month T-Bills Rise in Auction
From Times Wire Services
The Treasury Department auctioned $15 billion in three-month bills at a discount rate of 4.905%, up from 4.830% last week. An additional $14 billion in six-month bills was auctioned at a discount rate of 5.110%, up from 5.055% last week.
These discount rates understate the actual return to investors -- 5.036% for three-month bills, with a $10,000 bill selling for $9,876.01, and 5.318% for a six-month bill selling for $9,741.66.
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 5.24% last week from 5.13% the previous week.
