T-Bill Rates Rise in Treasury Auction

The Treasury Department sold $18 billion in three-month bills at a discount rate of 1.23%, up from 1.13% last week. An additional $15 billion was sold in six-month bills at 1.505%, up from 1.4%.

The new rates understate the actual return to investors -- 1.251% for three-month bills, with a $10,000 bill selling for $9,968.90, and 1.538% for a six-month bill selling for $9,923.90.

In a separate report, the Federal Reserve said the average yield for one-year constant-maturity Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 1.92% last week from 1.82% the previous week.