WASHINGTON — Interest rates on short-term Treasury bills rose in yesterday’s auction, with rates on three-month bills rising to the highest level since early July.
The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.160 percent, up from 0.140 percent last week. Another $29 billion was auctioned in six-month bills at a discount rate of 0.195 percent, up from 0.190 percent.
The three-month rate was the highest since these bills averaged 0.165 percent on July 6. The six-month rate was the highest since these bills averaged 0.200 percent on July 26.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,995.96 while a six-month bill sold for $9,990.14. That equals an annualized rate of 0.162 percent for the three-month bills and 0.198 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, was unchanged at 0.26 percent last week.