Short-term T-bill rates climb in sale
From Times Wire Services
The Treasury Department auctioned $16 billion in three-month bills at a discount rate of 3.925%, up from 3.840% last week. An additional $15 billion in six-month bills was auctioned at a discount rate of 4.095%, up from 4.000% last week.
The new discount rates understate the actual return to investors -- 4.03% for the three-month bills, with a $10,000 bill selling for $9,900.78, and 4.251% for a six-month bill selling for $9,792.98.
Separately, the Federal Reserve said that the average yield for one-year Treasury bills rose to 4.12% last week, up from 4.05% the previous week.
