Interest rates on short-term Treasury securities rose...

Interest rates on short-term Treasury securities rose at the latest auction to their highest level in more than six months. The Treasury Department sold $6.4 billion in new three-month bills at an average discount rate of 6.31%, up from 6.13% last week. Another $6.4 billion of new six-month bills was sold at an average discount rate of 6.51%, up from 6.41% last week. The rates were the highest since Oct. 19, when three-month bills sold for 6.84% and six-month bills averaged 7.21%. The new discount rates understate the actual return to investors--6.50% for three-month bills, with a $10,000 bill selling for $9,840.50, and 6.82% for a six-month bill selling for $9,670.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.