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Published: Monday, 2/8/2010

Rates on T-bills rise in weekly auction


The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.110 percent, up from 0.095 percent last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.170 percent, up from 0.165 percent last week.

The three-month rate was the highest since these bills averaged 0.115 percent on Sept. 28, 2009. The six-month rate was the highest since it reached 0.180 percent on Jan. 4.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.22 while a six-month bill sold for $9,991.41. That would equal an annualized rate of 0.112 percent for the three-month bills and 0.173 percent for the six-month bills.

Separately, the Federal Reserve did not release on Monday the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages. That figure will be released on Tuesday. Heavy snowfall over the weekend forced the government, including the Fed, to shut down Monday.

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