Interest rates on short-term Treasury bills rose in yesterday's auction to the highest levels since February.
The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 1.800 percent, up from 1.610 percent last week and the highest since the bills averaged 2.160 percent on Feb. 25. An additional $23 billion in six-month bills was auctioned at a discount rate of 1.850 percent, up from 1.740 percent last week and the highest since 2.070 percent, also on Feb. 25.
Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, edged up to 1.94 percent last week from 1.93 percent the previous week.
