WASHINGTON - Interest rates on short-term Treasury bills were unchanged in Monday's auction with rates on six-month bills holding at the lowest level since late January.
The Treasury Department auctioned $35 billion in three-month bills at a discount rate of 0.075 per cent, unchanged from last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.105 per cent, also unchanged from last week.
The three-month rate was at the lowest level since three-month bills averaged 0.070 per cent on Feb. 4. The six-month rate was at the lowest level since six-month bills averaged 0.095 per cent on Jan. 22.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.08 while a six-month bill sold for $9,994.69. That would equal an annualized rate of 0.076 per cent for the three-month bills and 0.107 per cent 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 down to 0.14 per cent last week from 0.15 per cent in the previous week.
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