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IN BRIEF / THE ECONOMY

Interest Rates Rise at Treasury Bill Auction

September 10, 2002|Associated Press

The Treasury Department sold $16 billion in three-month bills at a discount rate of 1.645%, up from 1.61% last week. An additional $13 billion was sold in six-month bills at 1.635%, up from 1.58%.

Both the three-month and six-month rates were the highest since July 29, when the bills sold for 1.68% and 1.69%, respectively.

The new discount rates understate the actual return to investors--1.676% for three-month bills, with a $10,000 bill selling for $9,958.40, and 1.672% for a six-month bill selling for $9,917.30.

In a separate report, the Federal Reserve said the average yield for one-year constant-maturity Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 1.7% last week from 1.8% the week before.

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