WASHINGTON - Interest rates on short-term Treasury bills rose in auction yesterday with rates on six-month bills climbing to the highest level since late February.
The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 1.850 percent, up from 1.820 percent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 2.050 percent, up from 1.950 percent last week.
The three-month rate was the highest since three-month bills averaged 1.870 percent on May 27. The six-month rate was the highest since these bills averaged 2.070 percent on Feb. 25.
The discount rates reflect the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,953.24, while a six-month bill sold for $9,896.36.
That represents an annualized rate of 1.885 percent for the three-month bills and 2.100 percent for the six-month bills.
Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 2.14 percent last week from a revised 2.19 percent the previous week.