Rates mixed at weekly US Treasury auction with 3-month bills unchanged and 6-month bills up

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WASHINGTON – Interest rates on short-term Treasury bills were mixed in Monday’s auction with rates on three-month bills unchanged, while rates on six-month bills rose to their highest level since late March.

The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 0.035 per cent, unchanged from last week. Another $23 billion in six-month bills was auctioned at a discount rate of 0.070 per cent, up from 0.060 per cent last week.

The six-month rate was the highest since those bills averaged 0.075 per cent on March 24.

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 $9,996.46. That would equal an annualized rate of 0.035 per cent for the three-month bills and 0.071 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 up to 0.11 per cent last week from 0.10 per cent the previous week.

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