US Treasury bill rates fall at weekly auction with 3-month bills dipping to lowest since April

WASHINGTON – Interest rates on short-term Treasury bills fell in Monday’s auction, with rates on three-month bills falling to their lowest level since late April.

The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 0.025 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, down from 0.070 per cent last week.

The three-month rate was the lowest since those bills averaged 0.020 per cent on April 28. The six-month rate was the lowest since six-month bills averaged 0.045 per cent on May 5.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.37, while a six-month bill sold for $9,997.46. That would equal an annualized rate of 0.025 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, edged down to 0.10 per cent last week from 0.11 per cent the previous week.