Rates at weekly US Treasury auction fall for 3-month and 6-month bills to lowest in 5 weeks

WASHINGTON – Interest rates on short-term Treasury bills fell in Monday’s auction to their lowest levels in five weeks.

The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.070 per cent, down from 0.075 per cent last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.095 per cent, down from 0.100 per cent last week.

The three-month rate was the lowest since three-month bills averaged 0.050 per cent five weeks ago on Nov. 4. The six-month rate was the lowest since those bills averaged 0.085 per cent, also on Nov. 4.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.23 while a six-month bill sold for $9,995.20. That would equal an annualized rate of 0.071 per cent for the three-month bills and 0.096 per cent 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 up to 0.30 per cent last week from 0.29 per cent the previous week.