WASHINGTON - Interest rates on short-term Treasury bills rose in auction yesterday to the highest levels in six weeks.
The Treasury Department auctioned $16 billion in three-month bills at a discount rate of 4.185 percent, up from 3.925 percent last week. Another $15 billion in six-month bills was auctioned at a discount rate of 4.225 percent, up from 4.095 percent last week.
The three-month rate was the highest since three-month bills averaged 4.350 percent on Sept. 4. The six-month rate was the highest since 4.380 percent, also on Sept. 4.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,894.21 while a six-month bill sold for $9,786.40.
Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 4.24 percent last week from 4.12 percent the previous week.