NEW YORK, Oct 20 (Reuters) - The U.S. Treasury Department on Tuesday sold $5 billion worth of one-month bills at an interest rate of 0.12 percent, which was the highest level since February 2014, Treasury data showed.
T-bill interest rates on issues that mature in November have risen on worries the federal government would hit its borrowing limit in coming days. Analysts forecast the Treasury will run out of cash in mid-November, forcing it to possibly postpone payments on its debt obligations.
The spike in the rate snapped a string of five consecutive weeks of one-month bill sales in which the Treasury paid investors no interest on this T-bill maturity.
The ratio of bids to the amount offered was 4.53, down sharply from 9.66 at the prior auction last week. (Reporting by Richard Leong; Editing by Chizu Nomiyama)