WASHINGTON (AP) — Interest rates on short-term Treasury bills fell in Monday's auction to the lowest levels since late September.
The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 0.020 percent, down from 0.030 percent last week. Another $23 billion in six-month bills was auctioned at a discount rate of 0.045 percent, down from 0.050 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.010 percent on Sept. 30. The six-month rate was the lowest since these bills averaged 0.040 percent, also on Sept. 30.
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 $9,997.73. That would equal an annualized rate of 0.020 percent for the three-month bills and 0.046 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 0.11 percent last week, unchanged from the previous week.