Rates mixed at weekly Treasury auction

[July 07, 2010]  WASHINGTON (AP) -- Interest rates on 3-month bills rose to their highest level since April, while rates dipped on 6-month bills in Tuesday's auction.

The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.165 percent, up from 0.160 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.205 percent, down from 0.215 percent last week.

The three-month rate was the highest since three-month bills averaged 0.175 percent on April 5. The six-month rate was the lowest since those bills averaged 0.170 percent on June 21.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,995.83 while a six-month bill sold for $9,989.64. That would equal an annualized rate of 0.167 percent for the three-month bills and 0.208 percent for the six-month bills.

[Associated Press]

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