Interest rates on short-term Treasury bills fell in Tuesday's auction to the lowest levels since last June.
The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.110 percent, down from 0.130 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.155 percent, down from 0.165 percent.
Both rates were the lowest since June 14, when three-month bills averaged 0.065 percent and six-month bills averaged 0.150 percent.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.22 while a six-month bill sold for $9,992.16 That would equal an annualized rate of 0.112 percent for the three-month bills and 0.157 percent for the six-month bills.
Separately, the Federal Reserve said Tuesday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 0.29 percent last week from 0.30 percent the previous week