Rates rise at the weekly auction of Treasury Board

WASHINGTON - interest rates on short-term Treasury bills rose in the auction on Monday, but remain close to rates historically low.

The Department of the Treasury auction 27 billion in vouchers of three months from 0.030 per cent discount rate up to 0.025% last week. 24 Billion has been auction in denominations of six months to 0.070 per cent discount rate up to 0.065% last week.

The auction on Monday has come that the Government has reached its current limit of the loan of $ 14.3 billion. Secretary of the Treasury Timothy Geithner told Congress in a letter that he will begin to withdraw investments from both public employee pension fund to clear the room to continue with regular auctions of the debt. However, he warned that by 2 August autour it will be exhausted bookkeeping manoeuvres, it can take.

Three months Monday rate was the highest since three-month average 0.050% two weeks ago. The six-month rate was the highest since these bills also average 0.100 per cent, on 2 May.

The discount rate reflect that Bills sell for less than their nominal value. For a bill of $10,000, the price of three months was $9,999.24 while a bill of six months has sold for $9,996.46. Equivalent to an annualized rate of 0.031 per cent for the three-month bills and 0.071% for the six-month bills.

Separately, the Federal Reserve has said Monday that the average yield for one-year Treasury bills, an index of popular change in loans, adjustable-rate fell to 0.18% week last of 0.20% the previous week.