Rates at weekly auction for US Treasury bills rise to highest levels in 6 weeks

WASHINGTON – Interest rates on short-term Treasury bills rose in Monday’s auction to their highest levels in six weeks.

The Treasury Department auctioned $26 billion in three-month bills at a discount rate of 0.020 per cent, up from 0.015 per cent last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.155 per cent, up from 0.110 per cent last week.

The three-month rate was the highest since three-month bills averaged 0.055 per cent on Sept. 14. The six-month rate was the highest since those bills averaged 0.260 per cent, also on Sept. 14.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.49, while a six-month bill sold for $9,992.16. That would equal an annualized rate of 0.020 per cent for the three-month bills and 0.158 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 unchanged at 0.23 per cent last week, the same as the previous week.