Interest rates on 52-week Treasury bills rose...

Interest rates on 52-week Treasury bills rose at auction to the highest level for such a sale in 3 1/2 years. The Treasury Department sold $9.05 billion of the bills at an average discount rate of 7.92%, up from 7.57% at the last auction Oct. 20. The rate was the highest since May 14, 1985, when the one-year bills sold for 7.94%. The new discount rate understates the actual return to investors--8.55%, with a $10,000 bill selling for $9,199.20.