US T-bill rates are mixed at auction
Published February 21st, 2007
Interest rates on short-term Treasury securities were mixed in yesterday’s auction, with six-month bills falling and three-month bills rising to the highest level in more than six years.
The Treasury Department auctioned $20 billion in three-month bills at a discount rate of 5.035 percent, up from 5.025 percent last week. Another $16 billion in six-month bills was auctioned at a discount rate of 4.950 percent, down from 4.965 percent last week.
The three-month rate was the highest since these bills averaged 5.09 percent on Jan. 22, 2001. The six-month rate was the lowest since it stood at 4.92 percent on Jan. 8.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,872.73, while a six-month bill sold for $9,749.75.
The weekly Treasury bill auction was held yesterday this week because of the Presidents Day holiday on Monday
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