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 December
WASHINGTON — Interest rates on short-term Treasury bills fell in Monday's auction, with rates on three-month bills dropping to their lowest level since early December.
The Treasury Department auctioned $34 billion in three-month bills at a discount rate of 0.505 percent, down from 0.530 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.600 percent, down from 0.605 percent last week.
The three-month rate was the lowest since those bills averaged 0.490 percent on Dec. 5. The six-month rate was the lowest since those bills averaged 0.590 percent on Jan. 9.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,987.23, while a six-month bill sold for $9,969.67. That would equal an annualized rate of 0.513 percent for the three-month bills and 0.610 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, stood at 0.82 percent last Friday compared to 0.80 percent Jan. 17.