WASHINGTON (AP) — Interest rates on short-term Treasury bills rose in Monday's auction, with rates on six-month bills climbing to their highest level since early January.
The Treasury Department auctioned $37 billion in three-month bills at a discount rate of 0.325 percent, up from 0.320 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.480 percent, up from 0.455 percent last week.
The three-month rate was the highest since those bills averaged 0.350 percent on Feb. 1. The six-month rate was the highest since those bills averaged 0.500 percent on Jan. 4.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,991.78, while a six-month bill sold for $9,975.73. That would equal an annualized rate of 0.330 percent for the three-month bills and 0.488 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, edged up to 0.56 percent last week from 0.53 percent the previous week.