Rates climb at weekly US Treasury bill auction with 6-month bills at highest level since March

WASHINGTON – Interest rates on short-term Treasury bills rose in Monday’s auction with rates on six-month bills climbing to the highest level since March.

The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.060 per cent, up from 0.045 per cent last week. Another $25 billion in six-month bills was auctioned at a discount rate of 0.105 per cent, up from 0.075 per cent last week.

The three-month rate was the highest since three-month bills averaged 0.065 per cent on April 8. The six-month rate was the highest since these bills averaged 0.110 per cent on March 18.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.48 while a six-month bill sold for $9,994.69. That would equal an annualized rate of 0.061 per cent for the three-month bills and 0.107 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.