WASHINGTON (AP) - Interest rates on short-term Treasury bills rose in Monday's auction to the highest levels in two weeks.
WASHINGTON (AP) — Interest rates on short-term Treasury bills rose in Monday's auction to the highest levels in two weeks.
The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.035 percent, up from 0.020 percent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.135 percent, up from 0.105 percent last week.
The three-month rate was the highest since these bills averaged 0.040 percent two weeks ago on March 16. The six-month rate was the highest since these bills averaged 0.145 percent, also on March 16.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.12 while a six-month bill sold for $9,993.18. That would equal an annualized rate of 0.036 percent for the three-month bills and 0.137 percent 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 0.26 percent last week from 0.25 percent the previous week.