Treasury rates rise at weekly auction

THE ASSOCIATED PRESS

Interest rates on short-term Treasury bills rose in Monday’s auction with the rate on six-month bills climbing to the highest level in three weeks.

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 4.825 percent, up from 4.800 percent last week. Another $15 billion in six-month bills was auctioned at a discount rate of 4.885 percent, up from 4.865 percent last week.

The three-month rate was the highest since three-month bills averaged 4.870 percent two weeks ago. The six-month rate was the highest since 4.935 percent on Nov. 27.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,878.03 while a six-month bill sold for $9,753.04.

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 4.95 percent last week from 4.90 percent the previous week.