WASHINGTON – Interest rates on short-term Treasury bills rose in Monday’s auction.
The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.02 per cent, up from 0.015 per cent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.085 per cent, up from 0.07 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 $9,999.49, while a six-month bill sold for $9,995.70. That would equal an annualized rate of 0.02 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, declined to 0.24 per cent last week from 0.25 per cent the previous week.