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Rates at weekly US Treasury auction mixed with 6-month bills down to lowest level in 15 months

WASHINGTON – Interest rates on short-term Treasury bills were mixed in Monday’s auction with rates on three-month bills unchanged while six-month bills fell to the lowest level in 15 months.

The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.050 per cent, unchanged from last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.080 per cent, down from 0.085 per cent last week.

The six-month rate was the lowest since these bills averaged 0.075 per cent on Jan. 30, 2012.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.74 while a six-month bill sold for $9,995.96. That would equal an annualized rate of 0.051 per cent for the three-month bills and 0.081 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 unchanged at 0.12 per cent last week, the same as the previous week.