Interest rates on short-term Treasury bills inched higher in Monday's auction, posting another eight-year high.
The Treasury Department auctioned $39 billion in three-month bills at a discount rate of 0.905 per cent, up from 0.900 per cent last week, which had been the latest eight-year peak. Another $33 billion in six-month bills was auctioned at a discount rate of 1.020 per cent, up from 1.015 per cent last week.
The three-month rate was the highest since those bills averaged 1.250 per cent on Oct. 20, 2008. The six-month rate was the highest since those bills averaged 1.100 per cent on Nov. 3, 2008.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,977.12, while a six-month bill sold for $9,948.43. That would equal an annualized rate of 0.920 per cent for the three-month bills and 1.040 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 1.11 per cent last Friday, little changed from 1.12 per cent at the beginning of the week on May 8.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.