WASHINGTON – Interest rates on short-term Treasury bills rose in Monday’s auction from the previous week.
The Treasury Department auctioned $34 billion in three-month bills at a discount rate of 0.045 per cent, up from 0.035 per cent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.080 per cent, up from 0.070 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 $9,998.86 while a six-month bill sold for $9,995.96. That would equal an annualized rate of 0.046 per cent for the three-month bills and 0.081 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 down to 0.11 per cent last week from 0.14 per cent the previous week.