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...

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!