WASHINGTON — Interest rates on short-term Treasury bills fell in yesterday’s auction, with rates on three-month bills dropping to the lowest since June.
The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.130 percent, down from 0.155 percent last week. Another $29 billion in six-month bills was auctioned at a discount rate of 0.185 percent, down from 0.190 percent.
The three-month rate was the lowest since these bills averaged 0.115 percent on June 21. The six-month rate was the lowest since these bills averaged 0.180 percent Sept. 7.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.71, while a six-month bill sold for $9,990.65. That would equal an annualized rate of 0.132 percent for the three-month bills and 0.188 percent for the six-month bills.
Separately, the Federal Reserve said the average yield for one-year Treasury bills rose to 0.26 percent last week, from 0.25 percent.