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Treasury bill rates up at $57b auction

Associated Press / November 30, 2010

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WASHINGTON — Interest rates on short-term Treasury bills rose in yesterday’s auction with rates on three-month bills rising to the highest level in 15 months.

The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.175 percent, up from 0.140 percent last week. Another $28 billion in six-month bills were auctioned at a discount rate of 0.210 percent, up from 0.195 percent last week.

The three-month rate was the highest since these bills averaged 0.180 percent on Aug. 17, 2009. The six-month rate was the highest since these bills averaged 0.215 percent on June 28.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,995.58 while a six-month bill sold for $9,989.38. That would equal an annualized rate of 0.178 percent for the three-month bills and 0.213 percent for the six-month bills.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, an index for making changes in adjustable rate mortgages, was unchanged at 0.27 percent last week, the same as the previous week.