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Rates for US Treasury bills edged up at weekly auction to highest levels in 2 weeks

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

The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.035 per cent, up from 0.020 per cent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.135 per cent, up from 0.105 per cent last week.

The three-month rate was the highest since these bills averaged 0.040 per cent two weeks ago on March 16. The six-month rate was the highest since these bills averaged 0.145 per cent, also on March 16.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.12 while a six-month bill sold for $9,993.18. That would equal an annualized rate of 0.036 per cent for the three-month bills and 0.137 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 0.26 per cent last week from 0.25 per cent the previous week.