Rates on three-month and six-month bills rise at weekly Treasury auction

[alp227]

Source: Associated Press

WASHINGTON — Interest rates on short-term Treasury bills rose in Monday’s auction for the second straight week.

The Treasury Department auctioned $27 billion in three-month bills at a discount rate of 0.055 percent, up from 0.030 percent last week. Another $24 billion was auctioned in six-month bills at a discount rate of 0.1 percent, up from 0.070 percent last week.

The government has hit its current borrowing limit of $14.3 trillion. Last week Treasury Secretary Timothy Geithner told Congress in a letter that he will remove investments from two government employee pension funds to clear room to continue with regular debt auctions. However, he has warned that by around Aug. 2 he will exhaust the bookkeeping maneuvers he can take.

The three-month rate Monday was the highest since three-month bills averaged 0.065 percent on April 25. The six-month rate was the highest since these bills averaged 0.115 percent, also on April 25.

Read more: http://www.washingtonpost.com/business/rates-on-three-month-and-six-month-bills-rise-at-weekly-treasury-auction/2011/05/23/AFtQWz9G_story.html

[Yo_Mama]

1. The shutdown hasn't had an effect on Treasuries yet

http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2011

Those are yields for the year. You'll note we are much lower than for most of the year, and that after the shutdown happened, 3 & 6 mo yields hit their YTD lows.

[NJCher]

2. home interest rates

One of these is tied to home interest rates, right?

Can't recall. I was thinking of refinancing but I guess this means the rate will be going up.


Cher

[Yo_Mama]

3. 10 year rate

Right now the 10 year is still dropping. 3.13 yield today. It began April around 3.50, so now is really a good time to refinance!

[NJCher]

4. thanks, Yo

I will continue as planned.

:)


Cher