Rates on 3-, 6-month T-bills rise in auction
From the Associated Press
The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 5.010%, up from 4.995% last week. An additional $14 billion in six-month bills was auctioned at a discount rate of 4.980%, up from 4.965% last week.
The new discount rates understate the actual return to investors -- 5.145% for three-month bills, with a $10,000 bill selling for $9,873.36, and 5.18% for a six-month bill selling for $9,748.23.
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 5.10% last week from 5.08% the previous week.
