- The Washington Times - Monday, March 16, 2009

WASHINGTON (AP) - Interest rates on short-term Treasury bills were mixed in Monday’s auction with three-month bills declining and rates on six-month bills rising.

The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.250 percent, up from 0.240 percent last week. Another $29 billion in six-month bills was auctioned at a discount rate of 0.445 percent, down from 0.460 percent last week.

The three-month rate was the highest since three-month bills averaged 0.280 percent on March 2. The six-month rate was the lowest since these bills averaged 0.440 percent, also on March 2.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,993.68 while a six-month bill sold for $9,977.50. That would equal an annualized rate of 0.254 percent for the three-month bills and 0.452 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 0.70 percent last week from 0.68 percent the previous week.

LOAD COMMENTS ()

 

Click to Read More

Click to Hide