Rates fall at weekly US Treasury bill auction to lowest levels since September

WASHINGTON – Interest rates on short-term Treasury bills fell in Monday’s auction to the lowest levels since September.

The Treasury Department auctioned $28 billion in three-month bills at a discount rate of 0.035 per cent, down from 0.055 per cent last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.055 per cent, down from 0.080 per cent last week.

The three-month rate was the lowest since those bills averaged 0.010 per cent on Sept. 30. The six-month rate was the lowest since those bills averaged 0.040 per cent, also on Sept. 30.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.12 while a six-month bill sold for $9,997.22. That would equal an annualized rate of 0.035 per cent for the three-month bills and 0.056 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, was 0.13 per cent last week, unchanged from the previous week.