Tuesday, May 24, 2011

Rates rise at the weekly auction of Treasury Board

WASHINGTON - interest rates on short-term Treasury bills rose in Monday for the second consecutive week the auction.

The Department of the Treasury auction 27 billion dollars in three months at a rate of 0.055% discount, up to of 0.030% last week. 24 Billion was awarded to six months at a rate of 0.1% discount, up to of 0.070% last week.

The Government has reached its current limit of the loan of $ 14.3 billion. Last week, Secretary of the Treasury Timothy Geithner said Congress in a letter that it removes two public employee pension fund investment 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.

The three months Monday rate was the highest since three-month average 0.065 per cent on April 25. The six-month rate was the highest since these bills average also 0.115 per cent on April 25.

The discount rate indicate that Bills sell for less than their nominal value. For a bill of $10,000, the price of three months was $9,998.61 while a bill of six months has sold for $9,994.92. Equivalent to an annualized rate of 0.056 per cent for the three-month bills and 0.102% for the six-month bills.

Separately, the Federal Reserve has said Monday that the average yield for one-year Treasury bills, an index popular for making changes in loans, adjustable-rate passed to 0.19% week last of 0.18% the previous week.

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