News Column

Rates Rise at Weekly T-bill Auction

November 18, 2013

Associated Press

WASHINGTON (AP) Interest rates on short-term Treasury bills rose in Monday's auction to the highest in five weeks.

The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.080 percent, up from 0.075 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.100 percent, up from 0.095 percent last week.

The three-month rate was the highest since these averaged 0.130 percent five weeks ago on Oct. 15. The six-month rate was the highest since these bills averaged 0.150 percent, also on Oct. 15.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.98 while a six-month bill sold for $9,994.94. That would equal an annualized rate of 0.081 percent for the three-month bills and 0.101 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 up to 0.13 percent last week from 0.11 percent the previous week.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Original headline: Rates rise at weekly US Treasury bill auction



Source: Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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