Business

T-bill rates at lowest since Jan. ’12

WASHINGTON — Interest rates on short-term Treasury bills fell in Monday’s auction to the lowest levels since January 2012.

The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.040 percent, down from 0.050 percent last week.

Another $24 billion in six-month bills was auctioned at a discount rate of 0.76 percent, down from 0.80 percent last week.

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The three-month rate was the lowest since three-month bills averaged 0.025 percent on Jan. 17, 2012. The six-month rate was the lowest since averaging 0.070 percent on Jan. 23, 2012.

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For a $10,000 bill, the three-month price was $9,998.99, while a six-month bill sold for $9,996.21. That would equal an annualized rate of 0.041 percent for the three-month bills and 0.076 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, edged down to 0.11 percent last week from 0.12 percent the previous week.