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Interest Rates Rise in Treasury Auction

November 03, 1998| Associated Press

The Treasury Department sold $8 billion in three-month bills at a discount rate of 4.43%, up from 4.07% last week. An additional $8 billion was sold in six-month bills at an average rate of 4.36%, up from 4.16%. The rates were the highest since Sept. 28, when three-month bills sold for 4.43% and the six-month rate was 4.46%. The new discount rates understate the actual return to investors--4.54% for three-month bills, with a $10,000 bill selling for $9,888.10, and 4.52% for a six-month bill selling for $9,779.60. The department also sold 79-day cash management bills at a discount rate of 4.67%. The actual return to investors will be 4.78%, with a $10,000 bill selling for $9,897.50. Meanwhile, the next auction of five-year notes is today; 10-year notes Wednesday and 30-year bonds Thursday. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills rose to 4.10% last week from 4.01% the previous week.

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