Rates on US Treasury bills rise at weekly auction

WASHINGTON (AP) " Interest rates on short-term Treasury bills rose in Monday's auction, with three-month bills rising to their highest level in three weeks.

The Treasury Department auctioned $42 billion in three-month bills at a discount rate of 0.310 percent, up from 0.250 percent last week. Another $36 billion in six-month bills was auctioned at a discount rate of 0.490 percent, up from 0.420 percent last week.

The three-month rate was the highest since three-month bills averaged 0.375 percent three weeks ago on Sept. 12. The six-month rate was the highest since those bills averaged 0.500 percent on Sept. 19.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,992.16, while a six-month bill sold for $9,975.23. That would equal an annualized rate of 0.315 percent for the three-month bills and 0.498 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, edged down to 0.59 percent last week from 0.60 percent the previous week.

This story has been automatically published from the Associated Press wire which uses US spellings

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