WASHINGTON—Interest rates on short-term Treasury bills fell in Monday's auction.
The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.150 percent, down from 0.180 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.190 percent, down from 0.225 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.130 percent two weeks ago on Dec. 20. The six-month rate was the lowest since these bills averaged 0.185 percent, also on Dec. 20.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.21 while a six-month bill sold for $9,990.39. That would equal an annualized rate of 0.152 percent for the three-month bills and 0.193 percent 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 0.30 percent last week, the same as the previous week.
