Business

Rates fall on short-term T-bills

WASHINGTON — Interest rates on short-term Treasury bills fell in Monday’s auction, with the rate on six-month bills reaching their lowest level in over a year and a half.

The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.040 percent, down from 0.050 percent last week. Another $25 million in six-month bills was auctioned at a discount rate of 0.065 percent, down from 0.075 percent.

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The three-month rate was the lowest since those bills averaged 0.030 percent July 29. The six-month rate was the lowest since they averaged 0.060 percent Jan. 17, 2012.

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 $9,998.97, while a six-month bill sold for $9,996.71. That would equal an annualized rate of 0.041 percent for the three-month bills and 0.066 percent for the six-month bills.

Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes to adjustable-rate mortgages, was 0.13 percent last week, up from 0.12 percent the previous week.

Associated Press

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