WASHINGTON – Interest rates on short-term Treasury bills were mixed in Monday’s auction. Rates on three-month bills slipped and rates on six-month bills were unchanged.
The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 0.030 per cent, down from 0.035 per cent last week. Another $23 billion in six-month bills was auctioned at a discount rate of 0.050 per cent, unchanged from the auction of six-month bills last week.
The discount rates are a reflection of the bills selling for less than face value. For a $10,000 bill, the three-month price was $9,999.24 while a six-month bill sold for $9,997.47. That would equal an annualized rate of 0.030 per cent for the three-month bills and 0.051 per cent 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, remained the same from the previous week at 0.10 per cent.