Interest Rates Rise on Short-Term Bills

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 1.160%. An additional $16 billion in six-month bills was auctioned at a discount rate of 1.180%.

The three-month rate was up from 1.150% last week and was the highest since Jan. 13 when the bills averaged 1.180%. The six-month rate was up from 1.16% last week and was the highest since Feb. 3, when it was 1.185%.

The new discount rates understate the actual return to investors -- 1.179% for three-month bills, with a $10,000 bill selling for $9,970.70, and 1.204% for a six-month bill selling for $9,940.30.