WASHINGTON - Interest rates on short-term Treasury bills rose in Monday's auction with six-month bills climbing to the highest level since early August.
Interest rates up for 3- and 6-month Treasury bills
September 13, 2010 at 11:56PM
The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.140 percent, up from 0.135 percent last week. Another $29 billion was auctioned in six-month bills at a discount rate of 0.190 percent, up from 0.180 percent last week.
The three-month rate was the highest since these bills averaged 0.145 percent on Aug. 30. The six-month rate was the highest since these bills averaged 0.195 percent on Aug. 2.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.46, while a six-month bill sold for $9,990.39. That would equal an annualized rate of 0.142 percent for the three-month bills and 0.193 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 0.26 percent last week from 0.25 percent the previous week.
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