WASHINGTON (AP) — Interest rates on short-term Treasury bills fell in Tuesday's auction, with rates on three-month bills falling to the lowest level since mid-October.
The Treasury Department auctioned $26 billion in three-month bills at a discount rate of 0.015 percent, down from 0.020 percent last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.065 percent, down from 0.085 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.010 percent on Oct. 14. The six-month rate was the lowest since these bills averaged 0.060 percent on Nov. 10.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.62 while a six-month bill sold for $9,996.71. That would equal an annualized rate of 0.015 percent for the three-month bills and 0.066 percent for the six-month bills.
The weekly auction of three- and six-month bills, normally conducted on Monday, was held on Tuesday this week because of the President's Day holiday.
Separately, the Federal Reserve said that the weekly average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, would be released on Wednesday this week. Federal offices in Washington were closed Tuesday due to inclement weather.