Rates rise at weekly US Treasury auction

Rates for 3-month and 6-month bills rise at US Treasury auction

Associated Press

WASHINGTON (AP) -- Interest rates on three-month and six-month Treasury bills rose in Monday's auction.

The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.125 percent, up from 0.075 percent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.245 percent, up from 0.165 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 $9,996.84, while a six-month bill sold for $9,987.61. That would equal an annualized rate of 0.127 percent for the three-month bills and 0.249 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, was 0.36 percent last week, up from 0.33 percent in the previous week

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