Short-Term Rates Rise in Treasury Auction

The Treasury Department auctioned $15 billion in three-month bills at a discount rate of 4.535%, up from 4.495% last week. An additional $14 billion in six-month bills was auctioned at 4.67%, up from 4.6% last week.

The rates understate the actual return to investors -- 4.651% for three-month bills, with a $10,000 bill selling for $9,885.37, and 4.849% for a six-month bill selling for $9,763.91.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 4.82% last week from 4.77% the previous week.