Rates fall at weekly US Treasury bill auction to lowest levels since last September

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WASHINGTON – Interest rates on short-term Treasury bills fell in Monday’s auction to the lowest levels since late September.

The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 0.020 per cent, down from 0.030 per cent last week. Another $23 billion in six-month bills was auctioned at a discount rate of 0.045 per cent, down from 0.050 per cent last week.

The three-month rate was the lowest since three-month bills averaged 0.010 per cent on Sept. 30. The six-month rate was the lowest since these bills averaged 0.040 per cent, also on Sept. 30.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.49, while a six-month bill sold for $9,997.73. That would equal an annualized rate of 0.020 per cent for the three-month bills and 0.046 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, was 0.11 per cent last week, unchanged from the previous week.

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