WASHINGTON (AP) — Interest rates on short-term Treasury bills fell in Monday's auction to their lowest levels in two weeks.
The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.340 percent, down from 0.350 percent last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.475 percent, down from 0.480 percent last week.
The three-month rate was the lowest since those bills averaged 0.275 percent on May 16. The six-month rate was the lowest since six-month bills averaged 0.370 percent, also on May 16.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,991.41, while a six-month bill sold for $9,975.99. That would equal an annualized rate of 0.345 percent for the three-month bills and 0.483 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 0.68 percent last week from 0.62 percent the previous week.