Treasury Bill Rates Highest Since March 2

The Treasury Department sold $6.26 billion in three-month bills at an average discount rate of 5.05%, up from 5.03% last week. An additional $7.27 billion were sold in six-month bills at an average rate of 5.08%, up from 4.99%. The rates were the highest since March 2, when three-month bills sold for 5.12% and six-month bills averaged 5.13%. The new discount rates understate the actual return to investors: 5.19% for three-month bills, with a $10,000 bill selling for $9,872.30, and 5.28% for a six-month bill selling for $9,743.40. Upcoming auctions are tentatively scheduled for April 28 for two-year notes and April 29 for five-year notes. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 5.39% last week from 5.36% the previous week.