Short-Term T-Bill Rates Rise at Auction

The Treasury Department sold $12 billion in three-month bills at an average discount rate of 5.15%, up from 5.12% last week. An additional $13.2 billion was sold in six-month bills at an average rate of 5.20%, up from 5.15%. The three-month bill rate is highest since the bills sold for 5.17% on May 19. The six-month bill rate is the highest since the bills averaged 5.22% on June 2. The new discount rates understate the actual return to investors--5.29% for three-month bills, with a $10,000 bill selling for $9,869.80, and 5.41% for a six-month bill selling for $9,737.10. The next auction of three-year notes will be today; of 10-year notes, Wednesday; of 30-year bonds, Thursday; of 52-week notes, Aug. 14; of two-year notes, Aug. 26; and of five-year notes, Aug. 27.