Rates on short-term T-bills climb in auction
From Times Wire Services
The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 4.975%, up from 4.94% last week. An additional $14 billion in six-month bills was auctioned at a discount rate of 4.95%, up from 4.92% last week.
The new discount rate understates the actual return to investors -- 5.108% for three-month bills, with a $10,000 bill selling for $9,874.24, and 5.148% for a six-month bill selling for $9,749.75.
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 5.03% last week, up from 4.98% the previous week.
