WASHINGTON – Interest rates on short-term Treasury bills were mixed in Monday’s auction with rates on three-month bills rising slightly and rates on six-month bills unchanged.
The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 0.035 per cent, up from 0.030 per cent last week. Another $23 billion in six-month bills was auctioned at a discount rate of 0.050 per cent, unchanged from last week.
The three-month rate was the highest since those bills averaged 0.045 per cent on March 31.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.12 while a six-month bill sold for $9,997.47. That would equal an annualized rate of 0.035 per cent for the three-month bills and 0.051 per cent 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 down to 0.10 per cent last week from 0.12 per cent the previous week.