Short-Term T-Bill Rates Rise at Auction

The Treasury Department auctioned $15 billion in three-month bills at a discount rate of 4.8%, up from 4.71% last week. An additional $14 billion in six-month bills was auctioned at 4.925%, up from 4.815% last week.

The rates understate the actual return to investors -- 4.926% for three-month bills, with a $10,000 bill selling for $9,878.67, and 5.121% for a six-month bill selling for $9,751.01.

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 5.04% last week from 5.03% the previous week.