WASHINGTON – Interest rates on short-term Treasury bills fell in Monday’s auction to their lowest levels since January.
The Treasury Department auctioned $28 billion in three-month bills at a discount rate of 0.235 per cent, down from 0.300 per cent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.385 per cent, down from 0.475 per cent last week.
The three-month rate was the lowest since those bills averaged 0.215 per cent on Jan. 11. The six-month rate was the lowest since those bills averaged 0.370 per cent on Jan. 19.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,994.06, while a six-month bill sold for $9,980.54. That would equal an annualized rate of 0.238 per cent for the three-month bills and 0.391 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 0.62 per cent last week from 0.64 per cent the previous week.