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T-bill rates rise to a four-month high

WASHINGTON -- Interest rates on short-term Treasury bills rose in yesterday's auction with rates on six-month bills climbing to the highest level in four months.

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 4.885 percent, up from 4.840 percent last week.

An additional $16 billion in six-month bills was auctioned at a discount rate of 4.890 percent, up from 4.865 percent last week.

The three-month rate was the highest since the 4.910 percent of April 2. The six-month rate was the highest since 4.910 percent on March 19.

The discount rates reflect that the bills sell for less than face value.

For a $10,000 bill, the three-month price was $9,876.52, while a six-month bill sold for $9,752.78.

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

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