US sells one-year bills at highest rate since 2010

NEW YORK: The US Treasury Department on Tuesday sold $25 billion of one-year T-bills at an interest rate of 0.330 percent, the highest since June 2010 and above the 0.290 percent posted at the last one-year auction held in June.

The ratio of bids submitted to the amount of one-year or 52-week bills offered was 3.37, lower than the 3.44 seen in June and the lowest since December 2009.

Meanwhile, the Treasury will pay on $40 billion in one-month bills at an interest rate of 0.035 percent, which was the highest since March 31 and above 0.020 percent a week earlier, according to Treasury data.

The bid-to-cover ratio at the latest one-month bill auction was 3.52. This was above prior week's 2.98 which was the lowest since October 2003.