WASHINGTON – Interest rates on short-term Treasury bills rose in Monday’s auction to their highest levels in two weeks.
The Treasury Department auctioned $36 billion in three-month bills at a discount rate of 0.490 per cent, up from 0.480 per cent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.610 per cent, up from 0.605 per cent last week.
The three-month rate was the highest since three-month bills averaged 0.515 per cent two weeks ago. The six-month rate was the highest since those bills averaged 0.625 per cent, also two weeks ago.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,987.61, while a six-month bill sold for $9,969.16. That would equal an annualized rate of 0.497 per cent for the three-month bills and 0.620 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 0.81 per cent last Friday after starting last week at 0.78 per cent.