WASHINGTON (AP) — Interest rates on short-term Treasury bills fell in Tuesday's auction with rates on six-month bills dropping to the lowest level since early June.
The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.100 percent, down from 0.105 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.135 percent, down from 0.140 percent last week.
The three-month rate was the lowest since those bills averaged 0.095 percent on July 23. The six-month rate was the lowest since they averaged 0.130 percent on June 4.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.47 while a six-month bill sold for $9,993.18. That would equal an annualized rate of 0.101 percent for the three-month bills and 0.137 percent for the six-month bills.
The weekly Treasury bill auction, which normally occurs on Monday, took place on Tuesday this week because of the Labor Day holiday.
Separately, the Federal Reserve said Tuesday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged down to 0.17 percent last week from 0.19 percent the previous week.