Short-term T-bill rates rise in sale

The Treasury Department auctioned $14 billion in three-month bills at a discount rate of 4.685%, up from 4.490% last week. An additional $14 billion in six-month bills was auctioned at a discount rate of 4.810%, up from 4.715% last week.

The new discount rates understate the actual return to investors -- 4.82% for the three-month bills, with a $10,000 bill selling for $9,881.57, and 5.012% for a six-month bill selling for $9,756.83.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, edged down slightly to 4.95% last week, compared with 4.98% the previous week.