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Short-term Treasury bill interest rates edge higher

WASHINGTON -- Interest rates on short-term Treasury bills rose in yesterday's auction with the rate on three-month bills reaching its highest level in three weeks.

The Treasury Department auctioned $15 billion in three-month bills at a discount rate of 4.775 percent, up from 4.730 percent last week.

Another $13 billion in six-month bills was auctioned at a discount rate of 4.810 percent, up from 4.735 percent last week.

The three-month rate was the highest since three-month bills averaged 4.785 percent on April 30. The six-month rate was the highest since 4.815 percent on May 7.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,879.30 while a six-month bill sold for $9,755.49.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 4.86 percent last week from 4.89 percent the previous week.

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