WASHINGTON (AP) — Interest rates on short-term Treasury bills were mixed in Monday’s auction with rates on six-month bills unchanged, while rates on three-month bills rose to their highest level in four weeks.
The Treasury Department auctioned $27 billion in three-month bills at a discount rate of 0.030 percent, up from 0.025 percent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.055 percent, unchanged from last week.
The three-month rate was the highest since those bills averaged 0.040 percent on June 30.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.24 while a six-month bill sold for $9,997.22. That would equal an annualized rate of 0.030 percent for the three-month bills and 0.056 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, was 0.11 percent last week, unchanged from the previous week.
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.