Short-term T-bill rates rise

WASHINGTON - Interest rates on short-term Treasury bills, after hitting historic lows last month, rose in auction yesterday.

The Treasury Department auctioned $26 billion in three-month bills at a discount rate of 0.15 percent, up from 0.05 percent last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.32 percent, up from 0.25 percent last week.

The three-month rate was the highest since these bills averaged 0.355 percent on Nov. 10. The six-month rate was the highest since 0.43 percent on Dec. 1.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.21 while a six-month bill sold for $9,983.82. That would equal an annualized rate of 0.152 percent for the three-month bills, and 0.325 percent for the six-month bills.

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 0.37 percent last week from 0.40 percent the previous week.