Treasury Rates Hit Peak Levels

Interest rates on short-term Treasury securities rose in Monday’s auction to the highest level since January.

The Treasury Department sold $12.7 billion in three-month bills at an average discount rate of 4.95 percent, up from 4.89 percent last week. An additional $12.7 billion was sold in six-month bills at an average discount rate of 5 percent, up from 4.80 percent.

The three-month bill rate was the highest since they sold for 5.01 percent on Jan. 29. The six-month bill rate was the highest since they averaged 5.02 percent on Jan. 9.

The new discount rates understate the actual return to investors - 5.08 percent for three-month bills with a $10,000 bill selling for $9,874.90 and 5.20 percent for a six-month bill selling for $9,747.20.