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California | BRIEFLY / THE ECONOMY

Interest Rates Rise in Treasury Auction

May 02, 2000|Associated Press

Interest rates on short-term Treasury securities rose in auction. The Treasury Department sold $8.5 billion in three-month bills at a discount rate of 5.775%, up from 5.620% last week. An additional $7.5 billion was sold in six-month bills at a rate of 5.935%, up from 5.745%. The three-month rate was the highest since March 20 when the bills sold for 5.780%. The six-month rate was the highest since March 6, 1995, when the rate was 6.00%. The new discount rates understate the actual return to investors--5.943% for three-month bills, with a $10,000 bill selling for $9,854, and 6.203% for a six-month bill selling for $9,700. The next auction of five-year notes will be May 9; 10-year notes on May 10 and two-year notes on May 24. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills rose to 6.19% last week from 6.09% the previous week.

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