Business

Rates on short-term T-bills fall

WASHINGTON — Interest rates on short-term Treasury bills fell in Monday’s auction, with rates on six-month bills dropping to the lowest level in four weeks.

The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.105 percent, down from 0.125 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.150 percent, down from 0.160 percent last week.

The three-month rate was the lowest since the bills averaged 0.100 percent on Oct. 22. The six-month rate was the lowest since these bills averaged 0.145 percent on Oct. 9.

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The discount rates reflect that the bills sell for less than face value.

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For a $10,000 bill, the three-month price was $9,997.35, while a six-month bill sold for $9,992.42. That would equal an annualized rate of 0.106 percent for the three-month bills and 0.152 percent for the six-month bills.

Separately, the Federal Reserve said that the average yield for one-year Treasury bills edged down to 0.18 percent last week from 0.19 percent the previous week.

Associated Press