WASHINGTON (AP) -- Interest rates on short-term Treasury bills rose in Monday's auction to their highest levels in more than eight years.
The Treasury Department auctioned $39 billion in three-month bills at a discount rate of 0.845 percent, up from 0.820 percent last week. Another $33 billion in six-month bills was auctioned at a discount rate of 0.975 percent, up from 0.955 percent last week.
The three-month rate was the highest since those bills averaged 0.900 percent on Oct. 27, 2008. The six-month rate was the highest since those bills averaged 0.990 percent Nov. 10, 2008.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,978.64, while a six-month bill sold for $9,950.71. That would equal an annualized rate of 0.859 percent for the three-month bills and 0.993 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, rose to 1.07 percent last Friday, up from 1.03 percent at the beginning of last week.