Rates fall at weekly US Treasury auction to lowest point since early December

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

The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.030 per cent, down from 0.040 per cent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.110 per cent, down from 0.130 per cent last week.

The three-month rate was the lowest since those bills averaged 0.025 per cent on Dec. 8. The six-month rate was the lowest since those bills averaged 0.090 per cent, also on Dec. 8.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.24, while a six-month bill sold for $9,994.44. That would equal an annualized rate of 0.030 per cent for the three-month bills and 0.112 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 down to 0.25 per cent last week from 0.27 per cent the previous week.