Rates rise at weekly US Treasury auction

Rates rise at weekly US Treasury auction of 3-month, 6-month bills

Associated Press

WASHINGTON (AP) -- Interest rates on short-term Treasury bills rose in Monday's auction.

The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.02 percent, up from 0.015 percent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.085 percent, up from 0.07 percent last week.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.49, while a six-month bill sold for $9,995.70. That would equal an annualized rate of 0.02 percent for the three-month bills and 0.086 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, declined to 0.24 percent last week from 0.25 percent the previous week.

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