WASHINGTON (AP) -- Interest rates on short-term Treasury bills rose in Tuesday's auction with rates on six-month bills climbing to the highest level since early July.
The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.100 percent, up from 0.085 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.145 percent, up from 0.135 percent last week.
The three-month rate was the highest since these bills averaged 0.110 percent two weeks ago on Sept. 24. The six-month rate was the highest since these bills averaged 0.150 percent on July 2.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.47 while a six-month bill sold for $9,992.67. That would equal an annualized rate of 0.101 percent for the three-month bills and 0.147 percent for the six-month bills.
Separately, the Federal Reserve said Tuesday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, was unchanged at 0.17 percent last week, the same as the previous week.
The weekly Treasury auction was held on Tuesday this week because Monday was a government holiday for Columbus Day.
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