WASHINGTON (AP) - Interest rates on short-term Treasury bills were mixed in Monday's auction with rates on three-month bills rising and those on six-month bills dropping.
WASHINGTON (AP) — Interest rates on short-term Treasury bills were mixed in Monday's auction with rates on three-month bills rising and those on six-month bills dropping.
The Treasury Department auctioned $18 billion in three-month bills at a discount rate of 0.015 percent, up from 0.005 percent last week. Another $18 billion in six-month bills was auctioned at a discount rate of 0.105 percent, down from 0.115 percent last week.
The three-month rate was the highest since three-month bills averaged 0.055 percent two weeks ago on Sept. 14. The six-month rate was the lowest since they averaged 0.100 percent on July 13.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.62, while a six-month bill sold for $9,994.69. That would equal an annualized rate of 0.015 percent for the three-month bills and 0.107 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, dropped to 0.34 percent last week from 0.41 percent the previous week.