WASHINGTON (AP) - Interest rates on short-term Treasury bills rose in Monday's auction with rates on three-month bills climbing to their highest level in nearly seven years.
WASHINGTON (AP) — Interest rates on short-term Treasury bills rose in Monday's auction with rates on three-month bills climbing to their highest level in nearly seven years.
The Treasury Department auctioned $34 billion in three-month bills at a discount rate of 0.305 percent, up from 0.255 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.415 percent, up from 0.370 percent last week.
The three-month rate was the highest since those bills averaged 0.325 percent on Feb. 17, 2009. The six-month rate was the highest since those bills averaged 0.470 percent two weeks ago on Jan. 11.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,992.90, while a six-month bill sold for $9,979.02. That would equal an annualized rate of 0.310 percent for the three-month bills and 0.423 percent for the six-month bills.
A Federal Reserve report on the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, which is normally issued on Monday, was delayed until Tuesday this week because the Fed's Washington offices were closed due to a winter snowstorm.