Short-Term Treasury Rates RiseThe Treasury Department sold...

Short-Term Treasury Rates Rise

The Treasury Department sold $6.03 billion in three-month bills at an average discount rate of 5.15%, up from 5.14% last week and the highest since March 31. Another $6.03 billion was sold in six-month bills at an average rate of 5.42%, up from 5.30% and the highest since they averaged 5.43% on Aug. 21, 1995. The new discount rates understate the actual return to investors--5.29% for three-month bills, with a $10,000 bill selling for $9,869.80, and 5.65% for a six-month bill selling for $9,726.00. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills was 5.99% last week, unchanged from the previous week. The next auction of two-year notes will be April 22; of five-year notes, April 23.