Rates for Short-Term Treasury Bills Climb

The Treasury Department sold $9 billion in three-month bills at a discount rate of 5.115%, up from 5.03% last week. An additional $8 billion was sold in six-month bills at a rate of 5.215%, up from 5.12%. The new discount rates understate the actual return to investors--5.269% for three-month bills, with a $10,000 bill selling for $9,870.70, and 5.444% for a six-month bill selling for $9,736.40. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 5.5% last week from 5.45% the week before. (Associated Press)

* U.S. businesses stockpiled goods in September at the fastest pace in six months in anticipation of healthy holiday sales and possible supply disruptions if year 2000 computer problems occur. Inventories rose 0.4% while business sales fell 0.2%, the first decline since January, the Commerce Department said. The inventory-to-sales ratio, which measures the time goods sit at businesses, remained at 1.33 months during September, the lowest since the government started compiling the data in 1980.