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6-month T-bills at highest since July

Associated Press / November 23, 2010

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WASHINGTON — Interest rates on short-term Treasury bills rose in yesterday’s auction, with rates on six-month bills rising to the highest level since July.

The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.140 percent, up from 0.135 percent last week. Another $28 billion in six-month bills was auctioned at 0.195 percent, up from 0.180 percent.

The three-month rate was the highest since these bills averaged 0.155 percent on Sept. 27. 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 $9,996.50 while a six-month bill sold for $9,990.20. That would equal an annualized rate of 0.142 percent for three-month bills and 0.198 percent for six-month bills.

Separately, the Federal Reserve said the average yield for one-year Treasury bills rose to 0.27 percent last week, from 0.24 percent.