Rates for 3-, 6-Month T-Bills Continue Rise

The Treasury Department sold $13 billion in three-month bills at a discount rate of 1.825%, up from 1.76% last week. An additional $13 billion was sold in six-month bills at 2.02%, up from 1.89%.

The three-month rate was the highest since Nov. 26, when the bills sold for 1.92%. The six-month rate was the highest since Oct. 22, when it was 2.13%.

The new discount rates understate the actual return to investors--1.858% for three-month bills, with a $10,000 bill selling for $9,953.90, and 2.069% for a six-month bill selling for $9,897.90.

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, rose to 2.41% last week from 2.28% the week before.