Rates fall at weekly Treasury auction
WASHINGTON (AP) — Interest rates on short-term Treasury bills fell in Monday's auction with rates on three-month bills dropping to the lowest level since early June.
The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.085 percent, down from 0.110 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.135 percent, down from 0.140 percent last week.
The three-month rate was the lowest since those bills averaged 0.075 percent on June 4. The six-month rate was the lowest since those bills averaged 0.130 percent on Sept. 17.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.85 while a six-month bill sold for $9,993.18. That would equal an annualized rate of 0.086 percent for the three-month bills and 0.137 percent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged down to 0.17 percent last week from 0.18 percent the previous week.