Short-Term Treasury Bill Rates Edge Up

The Treasury Department sold $9.5 billion in three-month bills at a discount rate of 6.14%, up from 6.11% last week. An additional $8.5 billion was sold in six-month bills at a rate of 6.1%, up from 6.09%. The new discount rates understate the actual return to investors--6.323% for three-month bills, with a $10,000 bill selling for $9,844.80, and 6.382% for a six-month bill selling for $9,691.60. An auction of two-year notes is tentatively scheduled for Sept. 27. In a separate report, the Federal Reserve said the average yield on one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 6.2% last week from 6.21% the week before.