Results mixed at weekly Treasury auction
WASHINGTON — Interest rates on short-term Treasury bills were mixed in Monday's auction with yields on three-month bills rising while six-month bills declined.
The Treasury Department auctioned $23 billion in three-month bills at a discount rate of 1.900 percent, up from 1.855 percent last week. Another $22 billion in six-month bills was auctioned at a discount rate of 2.135 percent, down from 2.255 percent last week.
The three-month rate was the highest since three-month bills averaged 2.050 percent on June 16. The six-month rate was the lowest since these bills averaged 2.050 percent on June 9.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,951.97 while a six-month bill sold for $9,891.47. That would equal an annualized rate of 1.936 percent for the three-month bills and 2.188 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, fell to 2.46 percent last week from 2.57 percent the previous week.
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