WASHINGTON - Interest rates on short-term Treasury securities rose in yesterday’s auction, with rates on three-month bills climbing to the highest level since April.
The Treasury Department auctioned $27 billion in three-month bills at a discount rate of 0.060 percent, up from 0.020 percent last week. Another $24 billion was auctioned in six-month bills at 0.100 percent, up from 0.060 percent. The three-month rate was the highest since 0.065 percent on April 25. The six-month rate was the highest since 0.105 percent on June 13.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.48, while the six-month bill sold for $9,994.94. That would equal an annualized 0.061 percent for the three-month bills and 0.102 percent for the six-month bills.
The Federal Reserve said the average yield for one-year Treasury bills was 0.18 percent last week, up from 0.16 percent.
