Rates rise on US Treasury bills to highest in 2 weeks

WASHINGTON (AP) " Interest rates on short-term Treasury bills rose in Monday's auction to their highest levels in two weeks.

The Treasury Department auctioned $36 billion in three-month bills at a discount rate of 0.490 percent, up from 0.480 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.610 percent, up from 0.605 percent last week.

The three-month rate was the highest since three-month bills averaged 0.515 percent two weeks ago. The six-month rate was the highest since those bills averaged 0.625 percent, also two weeks ago.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,987.61, while a six-month bill sold for $9,969.16. That would equal an annualized rate of 0.497 percent for the three-month bills and 0.620 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 0.81 percent last Friday after starting last week at 0.78 percent.

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

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