Interest Rates on 3-Month Bills Climb |
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Mon, 29 Jan 2007 23:16
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WASHINGTON (AFX) - Interest rates on short-term Treasury bills rose in Monday's auction, with the three-month bill climbing to the highest level in six years.The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 5.010 percent, up from 4.995 percent last week. Another $14 billion in six-month bills was auctioned at a discount rate of 4.980 percent, up from 4.965 percent last week.The three-month rate was the highest since three-month bills averaged 5.090 percent on Jan. 22, 2001. The six-month rate was the highest since 5.030 percent last Aug. 14.The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,873.36, while a six-month bill sold for $9,748.23.Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 5.10 percent last week from 5.08 percent the previous week.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Interest rates on 3-month bills climb 