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Rates decline on short-term T-bills

Associated Press / June 2, 2009
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WASHINGTON - Interest rates on short-term Treasury bills fell in yesterday's auction.

The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.150 percent, down from 1.175 percent last week.

Another $31 billion in six-months bills was auctioned at a discount rate of 0.290 percent, down from 0.300 percent 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 $9,996.21, while a six-month bill sold for $9,985.33. That would equal an annualized rate of 0.152 percent for three-month bills and 0.294 percent for the six-month bills.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes to adjustable-rate mortgages, rose to 0.49 percent last week, up from 0.47 percent the previous week.