Tuesday, January 7, 2003

Rates mixed in Treasury bill auction

The Associated Press

WASHINGTON - Interest rates on short-term Treasury securities were mixed in Monday's auction.

The Treasury Department sold $15 billion in three-month bills at a discount rate of 1.185 percent, unchanged from last week. An additional $15 billion was sold in six-month bills at a rate of 1.240 percent, up from 1.220 percent.

The six-month rate was the highest since Dec. 16, when the rate was 1.260 percent.

The new discount rates understate the actual return to investors - 1.207 percent for three-month bills with a $10,000 bill selling for $9,970, and 1.265 percent for a six-month bill selling for $9,937.30.

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Tristate Summary
Rates mixed in Treasury bill auction