Three-month and 6-month Treasury bill rates rise at weekly auction to highest levels in month
By APMonday, February 1, 2010
Three-month, 6-month T-bills rise in auction
WASHINGTON — Interest rates on short-term Treasury bills rose in Monday’s auction to their highest rates in a month.
The Treasury Department auctioned $23 billion in three-month bills at a discount rate of 0.095 percent, up from 0.055 percent last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.165 percent, up from 0.135 percent last week.
The three-month rate was the highest since these bills averaged 0.11 percent on Dec. 28. The six-month rate was the highest since it reached 0.18 percent on Jan. 4.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.60 while a six-month bill sold for $9,991.60. That would equal an annualized rate of 0.096 percent for the three-month bills and 0.167 percent for the six-month bills.
