Rates rise at weekly auction for US Treasury bills
WASHINGTON (AP) — Interest rates on short-term Treasury bills jumped in Monday's auction.
The Treasury Department auctioned $28 billion in three-month bills at a discount rate of 0.11 percent, up from 0.020 percent last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.280 percent, up from 0.155 percent last week.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.22, while a six-month bill sold for $9,985.84. That would equal an annualized rate of 0.112 percent for the three-month bills and 0.285 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, rose to 0.31 percent last week, up from 0.23 percent in the previous week.