Rates on short-term Treasury bills rise at weekly auction

WASHINGTON — Interest rates on short-term Treasury bills rose in Monday's auction to their highest levels since last month.

The Treasury Department auctioned $48 billion in three-month bills at a discount rate of 1.760 percent, up from 1.715 percent last week. Another $42 billion in six-month bills was auctioned at a discount rate of 1.945 percent, up from 1.880 percent last week.

The three-month rate was the highest since those bills averaged 1.780 percent on March 19. The six-month rate was the highest since those bills averaged 1.950 percent, also on March 19.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,955.11 while a six-month bill sold for $9,901.67. That would equal an annualized rate of 1.792 percent for the three-month bills and 1.992 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 2.12 percent on Friday, up from 2.08 percent at the beginning of last week on Apri 9.

Other News

Fidel Castro thanks Cuba, criticizes Obama, on 90th birthday

Aug 14, 2016

Fidel Castro thanked Cubans for their well-wishes on his 90th birthday and criticized President Barack Obama in a lengthy letter published in state media

Japan's economy slows to snail's pace as exports falter

Aug 15, 2016

Japan's economy slows in the April-June quarter, as weaker exports and business investment weigh on the faltering recovery of the world's third-largest economy

Conventional tax proposals in an unconventional US campaign

Aug 17, 2016

In this unconventional campaign season, Donald Trump and Hillary Clinton have produced two conventional tax plans that mostly track their parties' long-standing views

The Budget Report seeks to provide comprehensive coverage and analysis on the current economic, financial issues around the world. First hand finance and economic news all day, every day.

Contact us: sales@thebudgetreport.com