Interest Rates Rise in T-Bill Auction

The Treasury Department sold $19 billion in three-month bills at a discount rate of 2.155%, up from 2.075% last week. An additional $17 billion was sold in six-month bills at a rate of 2.365%, up from 2.280%.

The new discount rates understate the actual return to investors -- 2.197% for three-month bills, with a $10,000 bill selling for $9,946.13, and 2.427% for a six-month bill selling for $9,881.09.

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 2.53% last week from 2.47% the previous week.