Business

Rates rise on short-term T-bills

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

The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.100 percent, up from 0.09 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.145 percent, up from 0.135 percent last week.

The three-month rate was the highest since three-month bills averaged 0.105 percent on Nov. 13. The six-month rate was the highest since those bills averaged 0.150 percent on Nov. 5.

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The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.47, while a six-month bill sold for $9,992.67. That would equal an annualized rate of 0.101 percent for the three-month bills and 0.147 percent for the six-month bills.

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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, was unchanged at 0.17 percent last week, the same as the previous week.

Associated Press