Rates mixed at weekly US Treasury bill auctionMay 12, 2014 @ 1:16 pm
WASHINGTON (AP) -- Interest rates on short-term Treasury bills were mixed in Monday's auction with rates on three-month bills unchanged and rates on six-month bills rising to the highest level since late March.
The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 0.025 percent, the same as last week. Another $23 billion in six-month bills was auctioned at a discount rate of 0.050 percent, up from 0.045 percent last week.
The six-month rate was the highest since these bills averaged 0.065 percent on March 31.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.37 while a six-month bill sold for $9,997.47. That would equal an annualized rate of 0.025 percent for the three-month bills and 0.051 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, was 0.10 percent last week, unchanged from the previous week.
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Testing the System
A warning system woke seismologists seconds after an earthquake in Kitsap County
A driver accuses a Tacoma businessman of crossing the line behind the wheel
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.