3-month T-bill rates highest since 2001

The Treasury Department auctioned $19 billion in three-month bills at a discount rate of 5.025%, up from 5.01% last week. An additional $15 billion in six-month bills was auctioned at 4.965%, up from 4.955% last week.

The three-month rate was the highest since Jan. 22, 2001, when it averaged 5.09%. The six-month rate was the highest since Jan. 29 of this year, when it was 4.98%.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,872.98, and a six-month bill sold for $9,748.99.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, fell to 5.07% last week from 5.1% the previous week.