Rates rise at weekly US Treasury bill auction

Posted April 10

— Interest rates on short-term Treasury bills rose in Monday's auction to their highest levels in more than eight years.

The Treasury Department auctioned $39 billion in three-month bills at a discount rate of 0.825 percent, up from 0.790 percent last week. Another $33 billion in six-month bills was auctioned at a discount rate of 0.950 percent, up from 0.910 percent last week.

The three-month rate was the highest since those bills averaged 0.900 percent on Oct. 27, 2008. The six-month rate was the highest since those bills averaged 0.990 percent on Nov. 10, 2008.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,979.14, while a six-month bill sold for $9,951.97. That would equal an annualized rate of 0.838 percent for the three-month bills and 0.968 percent for the six-month bills.

Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 1.08 percent on Friday, up from 1.02 percent at the beginning of the week on April 3.


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