Short-term T-bill rates hit 3-month highs
WASHINGTON - Interest rates on short-term Treasury bills rose in auction yesterday to the highest levels in three months.
The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 1.870 percent, up from 1.855 percent last week. Another $23 billion in six-month bills was auctioned at a discount rate of 1.920 percent, up from 1.885 percent last week.
The three-month rate was the highest since three-month bills averaged 2.160 percent on Feb. 25.
The six-month rate was the highest since 2.070 percent, also on Feb. 25.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,952.73 while a six-month bill sold for $9,902.40. The equivalent annualized rates were 1.905 percent for the three-month bills and 1.966 percent for the six-month bills.
The weekly Treasury bill auctions, normally held on Monday, were held yesterday this week because of the Memorial Day holiday.
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 2.09 percent last week from 2.07 percent the previous week.
