WASHINGTON - Interest rates on short-term Treasury bills were unchanged in yesterday’s auction.
The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.065 percent. Another $31 billion in six-month bills were auctioned at a discount rate of 0.165 percent. The three-month rate remained the highest since those bills averaged 0.075 percent on Oct. 26. The six-month rate remained the lowest since those bills averaged 0.150 percent on Oct. 13.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.36, while a six-month bill sold for $9,991.66. That equals an annualized rate of 0.066 percent for the three-month bills, 0.167 percent for the six-month bills.
The average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 0.33 percent last week from 0.36 percent the previous week.