Interest rates on short-term Treasury bills rose in Monday's auction to the highest levels in two weeks.
The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.095 percent, up from 0.090 percent last week. The government auctioned another $30 billion in six-month bills at a discount rate of 0.150 percent, up from 0.135 percent last week.
The three-month rate was the highest since these bills averaged 0.110 percent two weeks ago on March 7. The six-month rate was the highest since these bills averaged 0.155 percent, also on March 7.
The discount rate reflects that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.60 while a six-month bill sold for $9,992.42. That would equal an annualized rate of 0.097 percent for the three-month bills and 0.153 percent for 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 0.23 percent last week from 0.25 percent the previous week.