Rates rise on short-term Treasury bills

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

The Treasury Department auctioned $28 billion in three-month bills at a discount rate of 0.540 percent, up from 0.530 percent last week. Another $34 billion in six-month bills was auctioned at a discount rate of 0.645 percent, up from 0.620 percent last week.

The three-month rate was the highest since those bills averaged 0.555 percent on Dec. 27. The six-month rate was the highest since those bills averaged 0.660 percent, also on Dec. 27.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,967.39, while a six-month bill sold for $9,986.35. That would equal an annualized rate of 0.656 percent for the three-month bills and 0.548 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, stood at 0.81 percent on Friday, up slightly from 0.79 percent at the start of last week.

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

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