Rates Mixed in Weekly Treasury Auction
Monday May 9, 3:37 pm ET
Rates on Three-Month Bills Decline; Rates on Six-Month Bills at Highest Level in 44 Months
WASHINGTON (AP) -- Interest rates on short-term Treasury bills were mixed in Monday's auction with rates on three-month bills declining while rates on six-month bills rose to the highest level in 44 months.
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The Treasury Department auctioned $15 billion in three-month bills at a discount rate of 2.850 percent, down from 2.870 percent last week. Another $13 billion in six-month bills was auctioned at a discount rate of 3.120 percent, up from 3.085 percent last week.
The three-month rate was the lowest since 2.805 percent on April 18. The six-month rate was the highest since 3.310 percent on Sept. 9, 2001.
The new discount rates understate the actual return to investors -- 2.911 percent for three-month bills with a $10,000 bill selling for $9,927.96 and 3.214 percent for a six-month bill selling for $9,842.27.
In a separate report, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, was unchanged at 3.33 percent last week, the same as the previous week.
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