WASHINGTON (AP) — Interest rates on short-term Treasury bills fell in Monday's auction, with rates on three-month bills dropping to their lowest level since late 2011.
The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.010 percent, down from 0.015 percent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.070 percent, down from 0.085 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.005 percent on Dec. 19, 2011. The six-month rate was the lowest since these bills averaged 0.065 percent on Feb. 23.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.75, while a six-month bill sold for $9,996.46. That would equal an annualized rate of 0.010 percent for the three-month bills and 0.071 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, rose to 0.26 percent last week from 0.23 percent the previous week.