WASHINGTON (AP) — Interest rates on short-term Treasury bills were mixed in Tuesday's auction with rates on three-month bills unchanged while rates on six-month bills dropped to the lowest level in three weeks.
The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.045 percent, unchanged from last week. Another $25 billion in six-month bills was auctioned at a discount rate of 0.080 percent, down from 0.085 percent last week.
The six-month rate was the lowest since these bills averaged 0.075 percent on May 6.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.86 while a six-month bill sold for $9,995.93. That would equal an annualized rate of 0.046 percent for the three-month bills and 0.081 percent for the six-month bills.
The weekly auction of three-month and six-month Treasury bills is normally held on Monday but took place on Tuesday this week because of the Memorial Day holiday.
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, was unchanged at 0.12 percent last week, the same as the previous week.