Interest rates on short-term Treasury bills fell in Monday's auction with rates on six-month bills dropping to the lowest level in three weeks.
The Treasury Department auctioned $26 billion in three-month bills at a discount rate of 0.155 percent, down from 0.165 percent last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.230 percent, down from 0.245 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.150 percent on April 26. The six-month rate was the lowest since these bills averaged 0.220 percent three weeks ago on April 19.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.08 while a six-month bill sold for $9,988.31. That would equal an annualized rate of 0.157 percent for the three-month bills and 0.233 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 in adjustable rate mortgages, fell to 0.39 percent last week from 0.43 percent the previous week.
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