WASHINGTON -- Interest rates on short-term Treasury bills rose in auction yesterday, with three-month bills rising to the highest level in more than six years.
The Treasury Department auctioned $19 billion in three-month bills at a discount rate of 5.025 percent, up from 5.010 percent last week. Another $15 billion in six-month bills was auctioned at a discount rate of 4.965 percent, up from 4.955 percent last week.
The three-month rate was the highest since these bills averaged 5.090 percent on Jan. 22, 2001. The six-month rate was the highest since 4.980 percent on Jan. 29.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,872.98, while a six-month bill sold for $9,748.99.
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 5.07 percent last week from 5.10 percent the previous week.