T-bill rates inch higher
WASHINGTON - Interest rates on short-term Treasury bills rose in yesterday's auction with rates on three-month bills climbing to the highest level since early November.
The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.15 percent, up from 0.14 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.345 percent, up from 0.32 percent last week.
The three-month rate was the highest since three-month bills averaged 0.355 percent on Nov. 10. The six-month rate was the highest since these bills averaged 0.43 percent on Dec. 1.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.21 while a six-month bill sold for $9,982.56. That would equal an annualized rate of 0.152 percent for the three-month bills and 0.350 percent for the six-month bills.
Separately, the Federal Reserve said yesterday the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, was unchanged at 0.43 percent last week, the same as the previous week.