Yields on short-term Treasury securities went up yesterday after declining for three of the previous five weeks. The rise followed a $500 million increase in the money supply last Friday.
The average yield on three-month bills sold at auction was 13.399 percent, up from 12.553 percent. On six-month bills, the rate jumped to 13.243 percent from 12.673 percent.
The average price for three-month bills was $96.61, and the average bond equivalent yield was 14.06 percent. On six-month bills, the average price was $93.31, and the average bond equivalent yield was 14.39 percent.
The Treasury accepted bids of $4.7 billion each for the three- and six-months bills.
The yields on both the three- and six-month bills reached their highest level since Feb. 16. Rates have gone up and down in alternate weeks since then.
The rate on six-month money market certificates at both banks and savings institutions will rise to 13.493 percent, starting today, up from 12.923 percent the previous week. The rate represents the Treasury bill rate plus one quarter percentage point.
The maximum rate permissible starting today on 2 1/2-year small saver certificates, which is pegged to the average yield on comparable Treasury securities, will be 14.30 percent at savings and loans and mutual savings banks, and 14.05 percent at commercial banks, up from 14.1 percent and 13.85 percent. However, not all institutions are offering the maximum rate.