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 4.995%, up from 4.975% last week. An additional $14 billion in six-month bills was auctioned at a discount rate of 4.965%, up from 4.950% last week.
The new discount rates understate the actual return to investors -- 5.129% for the three-month bills, with a $10,000 bill selling for $9,873.74, and 5.164% for a six-month bill selling for $9,748.99.
Separately, the Federal Reserve said that the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 5.08% last week from 5.03% the previous week.
