T-Bill Rates Rise To 5.66 Percent

Interest rates on short-term Treasury securities rose in Monday’s auction.

The Treasury Department sold $11.7 billion in three-month bills at an average discount rate of 5.66 percent, up from 5.56 percent last week. Another $11.7 billion was sold in six-month bills at an average discount rate of 5.75 percent, up from 5.69 percent.

The new discount rates understate the actual return to investors - 5.84 percent for threemonth bills with a $10,000 bill selling for $9,856.90 and 6.02 percent for a six-month bill selling for $9,709.30.

In a separate report, the Federal Reserve said Monday that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable rate mortgages, fell to 6.17 percent last week from 6.28 percent the previous week.