WASHINGTON -- Interest rates on short-term Treasury bills rose in yesterday's auction with rates on three-month bills hitting the highest level since mid-November.
The Treasury Department auctioned $19 billion in three-month bills at a discount rate of 0.930 percent. Another $17 billion in six-month bills was auctioned at a discount rate of 0.995 percent.
The three-month rate was up from 0.915 percent last week and was the highest since three-month bills averaged 0.935 percent on Nov. 17. The six-month rate was up from 0.975 percent last week and was the highest since 1.00 percent on Feb. 2.
The new discount rates understate the actual return to investors -- 0.947 percent for three-month bills with a $10,000 bill selling for $9,976.50 and 1.017 percent for a six-month bill selling for $9,949.70.
Separately, 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 percent last week from 1.24 percent the previous week.