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T-bill rates at highest level in 3 months

WASHINGTON -- Interest rates on short-term Treasury bills rose in yesterday's auction to the highest levels in three months.

The Treasury Department auctioned $16 billion in three-month bills at a discount rate of 4.840 percent, up from 4.815 percent last week. Another $15 billion in six-month bills was auctioned at a discount rate of 4.865 percent, up from 4.850 percent last week.

The three-month rate was the highest since three-month bills averaged 4.865 percent April 16. The six-month rate was the highest since 4.890 percent on April 9.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,877.66 while a six-month bill sold for $9,754.05.

Separately, the Federal Reserve said that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged up to 5.00 percent last week from 4.99 percent the previous week.

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