WASHINGTON – Interest rates on short-term Treasury bills fell in Monday’s auction.
The Treasury Department auctioned $28 billion in three-month bills at a discount rate of 0.040 per cent, down from 0.055 per cent last week. Another $20 billion in six-month bills was auctioned at a discount rate of 0.060 per cent, down from 0.065 per cent last week.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.99 while a six-month bill sold for $9,996.97. That would equal an annualized rate of 0.041 per cent for the three-month bills and 0.061 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.