Interest Rates Rise in Treasury Bill Auction
From Associated Press
The Treasury Department sold $17 billion in three-month bills at a discount rate of 1.115%, up from 1.055% last week. Another $17 billion was sold in six-month bills at a rate of 1.11%, up from 1.03%.
The new discount rates understate the actual return to investors -- 1.137% for three-month bills, with a $10,000 bill selling for $9,971.80, and 1.135% for a six-month bill selling for $9,943.90.
In a separate report, the Federal Reserve said the average yield for one-year constant maturity T-bills, the most popular index for making changes in adjustable-rate mortgages, dipped to 1.16% last week from 1.22% the previous week.
From Associated Press
