WASHINGTON - Interest rates on short-term Treasury bills fell in yesterday’s auction to the lowest levels in two weeks.
The Treasury Department auctioned $23 billion in three-month bills at a discount rate of 0.055 percent, down from 0.060 percent last week.
Another $25 billion in six-month bills was auctioned at a discount rate of 0.135 percent, down from 0.145 percent last week.
The three-month rate was the lowest since these bills averaged 0.040 percent two weeks ago on Jan. 11. The six-month rate was the lowest since 0.130 percent, also on Jan. 11.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.61 while a six-month bill sold for $9,993.18.
That would equal an annualized rate of 0.056 percent for the three-month bills and 0.080 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, fell to 0.31 percent last week from 0.35 percent the previous week.