WASHINGTON (AP) — Interest rates on short-term Treasury bills fell in Monday’s auction, with rates on three-month bills falling to their lowest level since late April.
The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 0.025 percent, down from 0.035 percent last week. Another $23 billion in six-month bills was auctioned at a discount rate of 0.050 percent, down from 0.070 percent last week.
The three-month rate was the lowest since those bills averaged 0.020 percent on April 28. The six-month rate was the lowest since six-month bills averaged 0.045 percent on May 5.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.37, while a six-month bill sold for $9,997.46. That would equal an annualized rate of 0.025 percent for the three-month bills and 0.051 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 0.10 percent last week from 0.11 percent the previous week.