Treasury Bill Rates Climb at Auction

The Treasury Department sold $7.52 billion in three-month bills at a discount rate of 4.48%, up from 4.34% last week and the highest level since early March. An additional $7.50 billion was sold in six-month bills at a rate of 4.5%, up from 4.41%. The new discount rates understate the actual return to investors--4.61% for three-month bills, with a $10,000 bill selling for $9,886.80, and 4.68% for a six-month bill selling for $9,772.80. In a separate report, the Federal Reserve said that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 4.73% last week from 4.70% the previous week.