Short-term rates at weekly US Treasury Dept. auction mixed
APWASHINGTON -- Interest rates on short-term Treasury bills were mixed in Monday's auction with rates on three-month bills rising to the highest level in three weeks and rates on six-month bills unchanged.
December 25, 2013, 12:18 am TWN
The Treasury Department auctioned US$32 billion in three-month bills at a discount rate of 0.070 percent, up from 0.065 percent last week. Another US$27 billion in six-month bills was auctioned at a discount rate of 0.090 percent, unchanged from last week.
The three-month rate was the highest since three-month bills averaged 0.075 percent three weeks ago on Dec. 3.
The discount rates reflect that the bills sell for less than face value. For a US$10,000 bill, the three-month price was US$9,998.23 while a six-month bill sold for US$9,995.45. That would equal an annualized rate of 0.071 percent for the three-month bills and 0.091 percent for the six-month bills.