Rates Increase at Treasury Bill Auction

The Treasury Department sold $19 billion in three-month bills at a discount rate of 1.16%, up from 1.14% last week. An additional $17 billion was sold in six-month bills at a rate of 1.19%, up from 1.16%.

Three-month and six-month rates were the highest since Jan. 21, when the bills sold for 1.16% and 1.19%, respectively.

The new discount rates understate the actual return to investors -- 1.18% for three-month bills, with a $10,000 bill selling for $9,970.80, and 1.21% for a six-month bill selling for $9,940.10.

In a separate report, the Federal Reserve said the average yield for one-year constant maturity Treasury bills, the most popular index for making changes in adjustable-rate mortgages, stood at 1.32% last week, unchanged from the previous week.