Interest rates on short-term Treasury bills fell in Monday's auction to the lowest levels in two weeks.
The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.02 percent, down from 0.03 percent last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.06 percent, down from 0.065 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.015 percent two weeks ago on Oct. 11. The six-month rate was the lowest since these bills averaged 0.045 percent, also on Oct. 11.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.49 while a six-month bill sold for $9,996.97. That would equal an annualized rate of 0.02 percent for the three-month bills and 0.061 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, edged up to 0.12 percent last week from 0.11 percent the previous week.