Tuesday, October 8, 2013

Rates rise at weekly US Treasury auction

WASHINGTON  — Short-term Treasury bills interest rates shoot up to it's highest levels since late August in Monday's auction.

$35 billion in three-month bills were auctioned by the Treasury Department at a discount rate of 0.035%. Last week the discount rate was 0.010%. While the 30 billion in six-month bills was auctioned at a discount rate of 0.060% which has risen from 0.040% last week.

The discount rates indicates that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.12 while a six-month bill sold for $9,996,97. That would equal an annualized rate of 0.035 percent for the three-month bills and 0.061 percent for the six-month bills.

The Federal Reserve also said on Monday that the average yield for one-year Treasury bills was up to 0.11 percent last week from 0.10 percent the previous week.

Source AP

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