Business: Call to Duty

In its first big sale of securities since early August, the Treasury last week showed how fast interest rates are climbing. It offered $1 billion in 13-month notes paying 3½%, v. 1½% for short-term securities sold in August, and $2.5 billion in special 219-day bills priced to yield 3¼%. Only three months ago Treasury Secretary Robert Anderson sold 27-year bonds, which usually sell at a far higher rate than short-term securities, at only 3¼%.

What was worse than the high cost of the Treasury's latest borrowing was the fact that Secretary Anderson did not issue any bonds. He thought the market was...

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