Six-month Treasury bills highest in two weeks

March 13, 2007|Associated Press

WASHINGTON -- Interest rates on short-term Treasury bills were mixed in yesterday's auction with three-month bills unchanged while six-month bills rose to the highest level in two weeks.

The Treasury Department auctioned $21 billion in three-month bills at a discount rate of 4.965 percent, unchanged from last week. Another $17 billion in six-month bills was auctioned at a discount rate of 4.920 percent, up from 4.855 percent last week.

The six-month rate was the highest since these bills brought 4.950 percent on Feb. 26.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,874.50 while a six-month bill sold for $9,751.27.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 4.92 percent from 4.96 the previous week.