Treasury Bill Interest Rates Rise in Auction

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 3.450%, up from 3.435% last week. An additional $15 billion in six-month bills was auctioned at a discount rate of 3.670%, up from 3.570% last week.

The discount rates reflect that the bills sell for less than face value. The true annualized yield is 3.53% on the three-month bills and 3.79% on the six-month bills.

In a separate report, the Federal Reserve said that the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, edged down to 3.76% last week from 3.77% the previous week.