WASHINGTON – Interest rates on short-term Treasury bills were unchanged in Monday’s auction with both the three-month and six-month bills going for the same rates as the previous week.
The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.030 per cent, matching last week’s rate. Another $24 billion in six-month bills was auctioned at a discount rate of 0.050 per cent, also unchanged from last week.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.23 while a six-month bill sold for $9,997.47. That would equal an annualized rate of 0.030 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 up to 0.11 per cent last week from 0.10 per cent the previous week.