T-Bill Rates Climb: Interest rates on short-term...

T-Bill Rates Climb: Interest rates on short-term Treasury securities rose to the highest level in two weeks. The Treasury Department sold $6.6 billion in three-month bills at an average discount rate of 7.94%, up from 7.65% last week. Another $6.6 billion in six-month bills was sold at an average discount rate of 7.70%, up from 7.35% last week. The rates were the highest since July 24, when three-month bills sold for 8.09% and six-month bills averaged 7.73%. The discount rates understate the actual return to investors--8.21% for three-month bills, with a $10,000 bill selling for $9,799.30 and 8.12% for a six-month bill selling for $9,610.70. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 7.73% last week, from 7.86% the previous week.