WASHINGTON - Interest rates on short-term Treasury bills were mixed in yesterday’s auction, with rates on three-month bills rising to the highest level in five months, while six-month bills edged down.
The Treasury Department auctioned $26 billion in three-month bills at a discount rate of 0.125 percent, up from 0.100 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.185 percent, down from 0.190 percent last week.
The three-month rate was the highest since three-month bills averaged 0.135 percent on Sept. 14. The six-month rate was the lowest since these bills averaged 0.170 percent three weeks ago.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.84; a six-month bill sold for $9,990.65. That would equal an annualized rate of 0.127 percent for the three-month bills and 0.188 percent for the six-month bills.
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 0.34 percent last week, from 0.36 percent the previous week.