Rates on short-term US Treasury bills up at weekly auction

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

The Treasury Department auctioned $48 billion in three-month bills at a discount rate of 1.500 percent, up from 1.425 percent last week. Another $42 billion in six-month bills was auctioned at a discount rate of 1.650 percent, up from 1.625 percent last week.

The three-month rate was the highest since three-month bills averaged 1.690 percent on Sept. 8, 2008. The six-month rate was the highest since those bills averaged 1.800 percent on Oct. 20, 2008.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,962.08 while a six-month bill sold for $9,916.58. That would equal an annualized rate of 1.527 percent for the three-month bills and 1.687 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 1.89 percent on Thursday, up from 1.80 percent on Jan. 26.

People also read these

Investors to seek any hint of Yellen timetable on rate hikes

Aug 26, 2016

Investors to seek any hint in Yellen speech of a timetable for next rate hikes

Yellen suggests rate hike is coming but offers no timetable

Aug 26, 2016

Yellen says 'the case for an increase' in rates has strengthened but offers no timetable

Global stocks rise amid upbeat manufacturing data

Sep 1, 2016

European stocks rose Thursday, buoyed by positive manufacturing data from Britain and China while investors await U.S. employment data later this week

Subscribe to our newsletter!

Your Name

Your Email Address