Rates rise on Treasury bills
WASHINGTON - Interest rates on short-term Treasury bills rose in yesterday's auction to the highest levels in two weeks.
The Treasury Department auctioned $27 billion in three-month bills at a discount rate of 0.14 percent, up from 0.12 percent last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.325 percent, up from 0.29 percent last week.
The three-month rate was the highest since three-month bills averaged 0.15 percent on Jan. 5. The six-month rate was the highest since these bills averaged 0.32 percent, also on Jan. 5.
The discount rates reflect that the bills sell for less than face value.
For a $10,000 bill, the three-month price was $9,996.46 while a six-month bill sold for $9,983.82.
That would equal an annualized rate of 0.142 percent for the three-month bills and 0.195 percent for the six-month bills.
The weekly Treasury bill auction is normally held on Monday but was held yesterday because of the Martin Luther King holiday.
The Federal Reserve's weekly report on the average rate for one-year Treasury bills was delayed because most federal offices were closed for the inauguration of President Obama.