3-, 6-Month T-Bill Rates Highest Since Sept.

The Treasury Department sold $7.5 billion in three-month bills at a discount rate of 4.52%, up from 4.44% last week. An additional $7.5 billion was sold in six-month bills at a rate of 4.53%, up from 4.44% a week ago. The three-month rate was the highest since Sept. 21, when the bills sold for 4.64%. The six-month rate was also the highest since Sept. 21, when that rate was 4.62%. The new discount rates understate the actual return to investors: 4.64% for three-month bills, with a $10,000 bill selling for $9,885.70, and 4.70% for a six-month bill selling for $9,771.20. Upcoming auctions are scheduled tentatively for today for two-year notes and Feb. 9 for five-year notes. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 4.63% last week from 4.47% the previous week.