WASHINGTON (AP) — Interest rates on short-term Treasury bills fell in Monday's auction with rates on six-month bills dropping to the lowest level in four weeks.
The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.105 percent, down from 0.125 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.150 percent, down from 0.160 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.100 percent two weeks ago on Oct. 22. The six-month rate was the lowest since these bills averaged 0.145 percent four weeks ago on Oct. 9.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.35 while a six-month bill sold for $9,992.42. That would equal an annualized rate of 0.106 percent for the three-month bills and 0.152 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, edged down to 0.18 percent last week from 0.19 percent the previous week.
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