Rates at weekly US Treasury auction mixed with 3-month bills rising to highest in 3 weeks

WASHINGTON – Interest rates on short-term Treasury bills were mixed in Monday’s auction with rates on three-month bills rising to the highest level in three weeks and rates on six-month bills unchanged.

The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.070 per cent, up from 0.065 per cent last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.090 per cent, unchanged from last week.

The three-month rate was the highest since three-month bills averaged 0.075 per cent three weeks ago on Dec. 3.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.23 while a six-month bill sold for $9,995.45. That would equal an annualized rate of 0.071 per cent for the three-month bills and 0.091 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 0.13 per cent last week from 0.14 per cent the previous week.