WASHINGTON (AP) - Interest rates on short-term Treasury bills rose in Monday's auction.
WASHINGTON (AP) — Interest rates on short-term Treasury bills rose in Monday's auction.
The Treasury Department auctioned $28 billion in three-month bills at a discount rate of 0.260 percent, up from 0.250 percent last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.550 percent, up from 0.515 percent last week.
The three-month rate was the highest since these bills averaged 0.280 percent two weeks ago on Dec. 14. The six-month rate was also the highest since these bills averaged 0.585 percent, also on Dec. 14.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,993.43, while a six-month bill sold for $9,972.19. That would equal an annualized rate of 0.265 percent for the three-month bills and 0.561 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, fell to 0.65 percent last week from 0.69 percent the week before.