WASHINGTON – Interest rates on short-term Treasury bills rose in Monday's auction to the highest levels in two weeks.
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The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.025 percent, up from 0.020 percent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.105 percent, up from 0.095 percent last week.
The three-month rate was the highest since three-month bills averaged 0.035 percent two weeks ago on March 30. The six-month rate was the highest since these bills averaged 0.135 percent, also on March 30.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.37 while a six-month bill sold for $9,994.69. That would equal an annualized rate of 0.025 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, fell to 0.22 percent last week from 0.25 percent the previous week.