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Rates mixed at weekly US Treasury bill auction with 3-month rates down and 6-month rates up

WASHINGTON – Interest rates on short-term Treasury bills were mixed in Monday’s auction with the rate on three-month bills declining to the lowest level since early March, while the rate on six-month bills rose.

The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.020 per cent, down from 0.025 per cent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.095 per cent, up from 0.090 per cent last week.

The three-month rate was the lowest since three-month bills averaged 0.015 per cent on March 9. The six-month rate was the highest since these bills averaged 0.105 per cent two weeks ago on April 13.

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 $9,995.20. That would equal an annualized rate of 0.20 per cent for the three-month bills and 0.097 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, edged up to 0.24 per cent last week from 0.23 per cent the previous week.