Short-term Treasury bill rates rise at auction

From the Associated Press

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 4.99%, up from 4.94% last week. An additional $15 billion in six-month bills was auctioned at 4.975%, up from 4.935% last week.

The new rates understate the actual return to investors -- 5.124% for three-month bills, with a $10,000 bill selling for $9,873.86, and 5.174% for a six-month bill selling for $9,748.49.

The Federal Reserve also said the yield for one-year Treasury bills rose to 5.05% last week from 5.03% the previous week.