WASHINGTON - Interest rates on short-term Treasury bills rose in Monday's auction to the highest levels in weeks.
The Treasury Department auctioned $28 billion in three-month bills at a discount rate of 0.160 percent, up from 0.115 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.215 percent, up from 0.170 percent last week.
The three-month rate was the highest since three-month bills averaged 0.165 percent on May 24. The six-month rate was the highest since those bills averaged 0.220 percent on June 1.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,995.95 while a six-month bill sold for $9,989.13. That would equal an annualized rate of 0.162 percent for the three-month bills and 0.218 percent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills slipped to 0.29 percent last week from 0.30 percent the previous week.
Federal Reserve policymakers met last week and repeated their pledge to hold interest rates at record lows for an "extended period" to fuel economic growth.
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