Short-Term Treasury Rates Rise

The Treasury Department sold $5.8 billion in three-month bills at an average discount rate of 5.01%, up from 4.99% last week. An additional $6.3 billion was sold in six-month bills at an average rate of 5.17%, up from 5.11%. The three-month rate was the highest since April 13, when the bills sold for 5.04%. The six-month rate was the highest since Dec. 29, when the average was 5.29%. The new discount rates understate the actual return to investors: 5.14% for three-month bills, with a $10,000 bill selling for $9,873.40, and 5.38% for a six-month bill selling for $9,738.60. Upcoming auctions are scheduled tentatively for May 27 for two-year notes, May 28 for five-year notes and Wednesday for 10-year notes. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills fell to 5.43% last week from 5.45% the previous week.