boston.com Business your connection to The Boston Globe

Interest rates rise on short-term Treasury bills

WASHINGTON -- Interest rates on short-term Treasury bills rose in yesterday's auction to the highest levels since 2001.

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 3.495 percent, up from 3.450 percent last week. Another $15 billion in six-month bills was auctioned at a discount rate of 3.715 percent, up from 3.670 percent last week.

The three-month rate was the highest since these bills averaged 3.550 percent on July 16, 2001. The six-month rate was the highest since 3.860 percent on April 30, 2001.

The discount rates reflect that the bills sells for less than face value. For a $10,000 bill, the price for a three-month bill was $9,911.65 while a six-month bill sold for $9,812.19.

Separately, the Federal Reserve said yesterday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 3.82 percent last week from 3.76 percent the previous week.

SEARCH THE ARCHIVES
 
Today (free)
Yesterday (free)
Past 30 days
Last 12 months
 Advanced search / Historic Archives