WASHINGTON - Interest rates on short-term Treasury bills fell in yesterday’s auction, with rates on three-month bills falling to the lowest level in three weeks.
The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.015 percent, down from 0.020 percent last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.045 percent, down from 0.060 percent last week.
The three-month rate was the lowest since the bills averaged 0.010 percent on Sept. 19.
The six-month rate was the lowest since these bills averaged 0.035 percent on Sept. 26.
The discount rates reflect that the bills sell for less than face value.
For a $10,000 bill, the three-month price was $9,999.62 while a six-month bill sold for $9,997.73.
That would equal an annualized rate of 0.015 percent for the three-month bills and 0.046 percent for the six-month bills.
Separately, the Federal Reserve said yesterday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, was unchanged at 0.11 percent last week.