T-Bill Interest Rates Rise: Interest rates on...

T-Bill Interest Rates Rise: Interest rates on short-term Treasury securities rose in Monday’s auction to the highest level in three weeks. The Treasury Department sold $7.4 billion in three-month bills at an average discount rate of 7.72%, up from 7.64% last week. Another $7.4 billion was sold in six-month bills at an average discount rate of 7.79%, up from 7.64% last week. The rates were the highest since Sept. 5 when three-month bills sold for 7.88% and six-month bills averaged 7.87%. The new discount rates understate the actual return to investors--7.98% for three-month bills, with a $10,000 bill selling for $9,804.90, and 8.22% for a six-month bill selling for $9,606.20.