WASHINGTON - Interest rates on short-term Treasury bills fell in yesterday’s auction, with rates on three-month bills dropping to the lowest level since December.
The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.060 percent, down from 0.075 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.170 percent, down from 0.185 percent last week.
The three-month rate was the lowest since those bills averaged 0.050 percent on Dec. 29.
The six-month rate was the lowest since 0.150 percent on Oct. 13.
The discount rates on three- and six-month bills reflect that they sell for less than face value. For a $10,000 bill, the three-month price was $9,998.48, while a six-month bill sold for $9,991.41. That would equal an annualized rate of 0.061 percent for the three-month bills, and 0.173 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 in adjustable rate mortgages, was unchanged last week at 0.39 percent.
