boston.com Business your connection to The Boston Globe

T-bill interest rates climb

WASHINGTON -- Interest rates on short-term Treasury bills rose in yesterday's auction with rates on six-month bills climbing to the highest level in more than five years.

The Treasury Department auctioned $15 billion in three-month bills at a discount rate of 4.720 percent, up from 4.705 percent last week. Another $14 billion in six-month bills was auctioned at a discount rate of 4.840 percent, up from 4.810 percent last week.

The three-month rate was the highest since three-month bills averaged 4.740 percent on May 15. The six-month rate was the highest since these bills averaged 4.920 percent on Jan. 22, 2001.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,880.69 while a six-month bill sold for $9,755.31.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged up to 4.99 percent last week from 4.98 percent the previous week.

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