Interest rates on short-term Treasury bills rose in Monday's auction to their highest levels in nine years.
The Treasury Department auctioned $42 billion in three-month bills at a discount rate of 1.290 per cent, up from 1.285 per cent last week. Another $36 billion in six-month bills was auctioned at a discount rate of 1.450 per cent, up from 1.435 per cent last week.
The three-month rate was the highest since those bills averaged 1.420 per cent on Sept. 22, 2008. The six-month rate was the highest since those bills averaged 1.800 per cent on Oct. 20, 2008.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,967.39 while a six-month bill sold for $9,926.69. That would equal an annualized rate of 1.312 per cent for the three-month bills and 1.481 per cent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, stood at 1.62 per cent last Thursday, compared to 1.61 per cent on Nov. 24.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.