WASHINGTON (AP) -- Interest rates on short-term Treasury bills rose in Monday's auction with rates on six-month bills climbing to the highest level since March.
The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.060 percent, up from 0.045 percent last week. Another $25 billion in six-month bills was auctioned at a discount rate of 0.105 percent, up from 0.075 percent last week.
The three-month rate was the highest since three-month bills averaged 0.065 percent on April 8. The six-month rate was the highest since these bills averaged 0.110 percent on March 18.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.48 while a six-month bill sold for $9,994.69. That would equal an annualized rate of 0.061 percent for the three-month bills and 0.107 percent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged down to 0.13 percent last week from 0.14 percent the previous week.
- Budget, Tax & Economy