boston.com Business your connection to The Boston Globe

Short-term T-bill rates increase in auction

WASHINGTON -- Interest rates on short-term Treasury bills rose in auction yesterday to the highest levels in nearly five years.

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 4.070 percent, up from 3.905 percent last week. Another $15 billion in six-month bills was auctioned at a discount rate of 4.265 percent, up from 4.200 percent last week.

The three-month rate was the highest since these bills averaged 4.125 percent on April 2, 2001. The six-month rate was the highest since 4.420 percent on March 12, 2001.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,897.12 while a six-month bill sold for $9,784.38.

Federal offices were closed Monday in observance of the New Year's holiday, so the weekly Treasury auction was held yesterday.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged down to 4.36 percent last week from 4.37 percent the previous week.

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