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6-month T-bill rates decline

Associated Press / April 28, 2009
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WASHINGTON - Interest rates on short-term Treasury bills were mixed in yesterday's auction, with six-month bills dropping to the lowest level since mid-January. Three-month bills were unchanged from last week.

The Treasury Department auctioned another $28 billion in six-month bills at a discount rate of 0.305 percent, down from 0.330 percent last week. That's the lowest rate since 0.290 percent on Jan. 12.

The Treasury also auctioned $29 billion in three-month bills at a discount rate of 0.135 percent, the same as 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 $9,996.59; a six-month bill sold for $9,984.58. That would equal an annualized rate of 0.137 percent for the three-month bills and 0.310 percent for the six-month bills.

Separately, the Federal Reserve reported that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 0.52 percent last week, from 0.55 percent the previous week.