Interest rates on short-term Treasury securities rose in Monday’s auction to the highest level in a month.
The Treasury Department sold $13.7 billion in three-month bills at an average discount rate of 5.02 percent, up from 5 percent last week. Another $13.5 billion was sold in six-month bills at an average discount rate of 5.14 percent, up from 5.08 percent.
The three-month bill rate was the highest since they sold for 5.03 percent on April 8.
The new discount rates understate the actual return to investors - 5.16 percent for three-month bills with a $10,000 bill selling for $9,873.10 and 5.35 percent for a six-month bill selling for $9,740.10.
In a separate report, the Federal Reserve said Monday that the average yield for one-year Treasury bills rose to 5.63 percent last week from 5.52 percent.