WASHINGTON - Interest rates on short-term Treasury bills were mixed in Monday's auction with rates on three-month bills dropping to the lowest level in two months while rates on six-month bills rose.
The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.145 percent, down from 0.155 percent last week. Another $30 billion was auctioned in six-month bills at a discount rate of 0.190 percent, up from 0.185 percent last week.
The three-month rate was the lowest since these bills averaged 0.115 percent on June 21. The six-month rate was the highest since these bills averaged 0.195 percent four weeks ago on Aug. 2.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.33 while a six-month bill sold for $9,990.39. That would equal an annualized rate of 0.147 percent for the three-month bills and 0.193 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, rose to 0.26 percent last week from 0.25 percent the previous week.
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