Auction rates on 3-month Treasury bills rise, 6-month rates fall in weekly auction
By APTuesday, July 6, 2010
Rates mixed at weekly Treasury auction
WASHINGTON — Interest rates on 3-month bills rose to their highest level since April, while rates dipped on 6-month bills in Tuesday’s auction.
The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.165 percent, up from 0.160 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.205 percent, down from 0.215 percent last week.
The three-month rate was the highest since three-month bills averaged 0.175 percent on April 5. The six-month rate was the lowest since those bills averaged 0.170 percent on June 21.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,995.83 while a six-month bill sold for $9,989.64. That would equal an annualized rate of 0.167 percent for the three-month bills and 0.208 percent for the six-month bills.
