WASHINGTON – Interest rates on short-term Treasury bills fell in Monday's auction.
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The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.020 percent, down from 0.040 percent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.105 percent, down from 0.145 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.015 percent on March 9. The six-month rate was the lowest since those bills averaged 0.095 percent, also on March 9.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,994.94, while a six-month bill sold for $9,946.92. That would equal an annualized rate of 0.020 percent for the three-month bills and 0.107 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, was 0.25 percent last week, the same as the previous week.