WASHINGTON – Interest rates on short-term Treasury bills were mixed in Monday’s auction with rates on three-month bills unchanged while rates on six-month bills rose to the highest level in five weeks.
The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.045 per cent. That’s unchanged from last week. Another $25 billion in six-month bills was auctioned at a discount rate of 0.085 per cent, up from 0.080 per cent last week.
The six-month rate was the highest since these bills averaged 0.090 per cent on April 15.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.86 while a six-month bill sold for $9,995.70. That would equal an annualized rate of 0.046 per cent for the three-month bills and 0.086 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 0.12 per cent last week from 0.11 per cent the previous week.