Short-Term Rates Rise in Treasury Auction

The Treasury Department auctioned $19 billion in three-month bills at a discount rate of 0.93%. An additional $17 billion in six-month bills was auctioned at 0.995%.

The three-month rate was up from 0.915% last week and was the highest since Nov. 17, when the bills averaged 0.935%. The six-month rate was up from 0.975% and was the highest since Feb. 2, when it was 1%.

The new rates understate the actual return to investors -- 0.947% for three-month bills, with a $10,000 bill selling for $9,976.50, and 1.017% for a six-month bill selling for $9,949.70.

In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, dipped to 1.23% last week from 1.24% the previous week.