WASHINGTON -- Interest rates on short-term Treasury bills rose in Monday's auction to their highest levels in nine years.
The Treasury Department auctioned $42 billion in three-month bills at a discount rate of 1.290 percent, up from 1.285 percent last week. Another $36 billion in six-month bills was auctioned at a discount rate of 1.450 percent, up from 1.435 percent last week.
The three-month rate was the highest since those bills averaged 1.420 percent on Sept. 22, 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 $9,967.39 while a six-month bill sold for $9,926.69. That would equal an annualized rate of 1.312 percent for the three-month bills and 1.481 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 1.62 percent last Thursday, compared with 1.61 percent on Nov. 24.
Business on 12/05/2017