Ates rise at weekly Treasury auction | VailDaily.com
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Ates rise at weekly Treasury auction

WASHINGTON – Interest rates on short-term Treasury bills rose in Tuesday’s auction to the highest levels in nearly five years.The Treasury Department auctioned $20 billion in three-month bills at a discount rate of 4.270 percent, up from 4.150 percent last week. Another $17 billion in six-month bills was auctioned at a discount rate of 4.315 percent, up from 4.250 percent last week.The three-month rate was the highest since these bills averaged 4.370 percent on March 19, 2001. The six-month rate was the highest since 4.420 percent on March 12, 2001.The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,892.06 while a six-month bill sold for $9,781.85.Separately, the Federal Reserve said Tuesday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 4.41 percent last week from 4.37 percent the previous week.Vail, Colorado


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