Three-month Treasury bill rate rises to 4.9%

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 4.93%, up from 4.875% last week. An additional $14 billion in six-month bills was auctioned at a discount rate of 4.9%, the same as last week.

The new discount rates understate the actual return to investors -- 5.062% for the three-month bills, with a $10,000 bill selling for $9,875.38, and 5.094% for a six-month bill selling for $9,752.28.

The Federal Reserve delayed release of its report on one-year Treasury bills, a popular index for adjustable-rate mortgages, until today because of the national day of mourning for former President Ford.