Interest rates on short-term U.S. Treasury bills increased to the highest levels in nearly five years in auctions held on Tuesday.

The U.S. Treasury Department auctioned 17 billion dollars in three-month bills at a discount rate of 4.070 percent, up from 3. 905 percent last week. The rate was the highest since these bills averaged 4.125 percent on April 2, 2001.

An additional 15 billion dollars were auctioned in six-month bills at a discount rate of 4.265 percent, up from 4.200 percent last week. The rate was the highest since 4.420 percent on March 12, 2001.

In a separate report, the U.S. Federal Reserve said Tuesday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged down to 4.36 percent last week from 4.37 percent the previous week.

Source: Xinhua