WASHINGTON (AP) — Interest rates on short-term Treasury bills fell in Tuesday's auction to the lowest levels in two weeks.
The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.050 percent, down from 0.095 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.075 percent, down from 0.110 percent last week.
The three-month rate was the lowest since these bills averaged 0.040 percent two weeks ago on Feb. 3. The six-month rate was the lowest since those bills averaged 0.060 percent, also on Feb. 3.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.74, while a six-month bill sold for $9,996.21. That would equal an annualized rate of 0.051 percent for the three-month bills and 0.076 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, was 0.12 percent last week, unchanged from the previous week.
The Treasury auction was held on Tuesday this week because of the Presidents Day holiday on Monday.