Interest rates on short-term Treasury bills rose.

The Treasury Department sold $7.8 billion in new three-month bills at an average discount rate of 5.51%, up from 5.4% last week. Another $7.8 billion was sold in new six-month bills at an average discount rate of 5.5%, up from 5.46% last week. The new discount rates understate the actual return to investors--5.67% for three-month bills, with a $10,000 bill selling for $9,860.70, and 5.74% for six-month bills selling for $9,721.90.