Policy: Economy

US Treasury rates mixed at weekly bill auction

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News,Business,Treasury,Economy,Wall Street,Financial Markets,Auctions

WASHINGTON (AP) — Interest rates on short-term Treasury bills were mixed in Monday's auction, with rates on three-month bills unchanged while rates on six-month bills dropped to their lowest level since early February.

The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 0.050 percent, unchanged from last week. Another $23 billion in six-month bills was auctioned at a discount rate of 0.075 percent, down from 0.080 percent last week.

The six-month rate was the lowest since those bills averaged 0.060 percent on Feb. 3.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.74 while a six-month bill sold for $9,996.21. That would equal an annualized rate of 0.051 percent for the three-month bills and 0.076 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, edged up to 0.14 percent last week from 0.12 percent the previous week.

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