WASHINGTON (AP) -- Interest rates on short-term Treasury bills rose in Monday's auction to the highest levels since October.
The Treasury Department auctioned $42 billion in three-month bills at a discount rate of 0.095 percent, up from 0.040 percent last week. Another $42 billion in six-month bills was auctioned at a discount rate of 0.110 percent, up from 0.060 percent last week.
The three-month rate was the highest since three-month bills averaged 0.130 percent on Oct. 15. The six-month rate was the highest since these bills averaged 0.150 percent, also on Oct. 15.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.60 while a six-month bill sold for $9,994.44. That would equal an annualized rate of 0.096 percent for the three-month bills and 0.112 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 up to 0.12 percent last week from 0.11 percent the previous week.
- Budget, Tax & Economy