WASHINGTON — Interest rates on short-term Treasury bills fell in yesterday’s auction to the lowest levels since late June.
The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.135 percent, down from 0.145 percent last week.
Another $30 billion was auctioned in six-month bills at a discount rate of 0.180 percent, down from 0.190 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 these bills averaged 0.170 percent, also on 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 $9,996.59 while a six-month bill sold for $9,990.90.
That would equal an annualized rate of 0.137 percent for the three-month bills and 0.183 percent for the six-month bills.
The Treasury auction of three-month and six-month bills was held yesterday instead of Monday this week because of Labor Day.
Separately, the Federal Reserve said yesterday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 0.25 percent last week from 0.26 percent the previous week.