Rates fall at weekly US Treasury auction
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 in three weeks.
The Treasury Department auctioned $37 billion in three-month bills at a discount rate of 0.315 percent, down from 0.325 percent last week. Another $30 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 0.300 percent three weeks ago on Feb. 16. The six-month rate was the lowest since those bills averaged 0.455 percent on Feb. 22.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,992.04, while a six-month bill sold for $9,975.99. That would equal an annualized rate of 0.320 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 0.66 percent last week from 0.56 percent the previous week.