Rates mixed at weekly US Treasury bill auction with rates on 6-month bills rising

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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 and rates on six-month bills rising to the highest level since late March.

The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 0.025 per cent, the same as last week. Another $23 billion in six-month bills was auctioned at a discount rate of 0.050 per cent, up from 0.045 per cent last week.

The six-month rate was the highest since these bills averaged 0.065 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 $9,999.37 while a six-month bill sold for $9,997.47. That would equal an annualized rate of 0.025 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, was 0.10 per cent last week, unchanged from the previous week.

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