Rates on US Treasury bills rose at weekly auction

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

The Treasury Department auctioned $37 billion in three-month bills at a discount rate of 0.325 per cent, up from 0.320 per cent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.480 per cent, up from 0.455 per cent last week.

The three-month rate was the highest since those bills averaged 0.350 per cent on Feb. 1. The six-month rate was the highest since those bills averaged 0.500 per cent on Jan. 4.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,991.78, while a six-month bill sold for $9,975.73. That would equal an annualized rate of 0.330 per cent for the three-month bills and 0.488 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 0.56 per cent last week from 0.53 per cent the previous week.