Business

Rates slide on short-term T-bills

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

The Treasury Department auctioned $28 billion in three-month bills at a discount rate of 0.035 percent, down from 0.055 percent last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.055 percent, down from 0.080 percent last week.

The three-month rate was the lowest since those bills averaged 0.010 percent on Sept. 30. The six-month rate was the lowest since those bills averaged 0.040 percent, also on Sept. 30.

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The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.12, while a six-month bill sold for $9,997.22.

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Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, was 0.13 percent last week, unchanged from the previous week.

Associated Press