WASHINGTON - Interest rates on short-term Treasury bills fell in Monday's auction to the lowest levels since June.
The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.125 percent, down from 0.130 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.155 percent, down from 0.170 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.115 percent on June 21. The six-month rate was the lowest since the bills averaged 0.15 percent, also June 21.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.84, while a six-month bill sold for $9,992.16. That would equal an annualized rate of 0.127 percent for the three-month bills and 0.157 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 0.23 percent last week from 0.22 percent the previous week.
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