Rates rise at weekly auction for 6-month and 3-month Treasury bills

WASHINGTON – Interest rates on short-term Treasury bills jumped in Monday’s auction.

The Treasury Department auctioned $28 billion in three-month bills at a discount rate of 0.11 per cent, up from 0.020 per cent last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.280 per cent, up from 0.155 per cent last week.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.22, while a six-month bill sold for $9,985.84. That would equal an annualized rate of 0.112 per cent for the three-month bills and 0.285 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, rose to 0.31 per cent last week, up from 0.23 per cent in the previous week.