Business

Interest rates fall on short-term T-bills

WASHINGTON — Interest rates on short-term Treasury bills declined in Monday’s auction with rates on six-month bills falling to the lowest level in five weeks.

The Treasury Department auctioned $35 billion in three-month bills at a discount rate of 0.095 percent, down from 0.110 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.115 percent, down from 0.120 percent last week.

Advertisement

The three-month rate was the lowest since three-month bills averaged 0.085 percent on Feb. 11. The six-month rate was the lowest since those bills averaged 0.110 percent on Feb. 4.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9.997.59 while a six-month bill sold for $9,994.18. That would equal an annualized rate of 0.096 percent for the three-month bills and 0.117 percent for the six-month bills.

Get Talking Points in your inbox:
An afternoon recap of the day’s most important business news, delivered weekdays.
Thank you for signing up! Sign up for more newsletters here

The Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, declined to 0.15 percent from 0.17 percent.

Associated Press

Loading comments...
Real journalists. Real journalism. Subscribe to The Boston Globe today.
We hope you've enjoyed your free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com