WASHINGTON – Interest rates on short-term Treasury bills were mixed in Monday’s auction with rates on six-month bills rising to their highest point since March.
The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.025 per cent, unchanged from last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.070 per cent, up from 0.060 per cent last week.
The six-month rate was the highest since those bills averaged 0.075 per cent on March 24.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.37, while a six-month bill sold for $9,996.46. That would equal an annualized rate of 0.025 per cent for the three-month bills and 0.071 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 0.14 per cent last week from 0.12 per cent the previous week.