Short-term Treasury bill rates lower

February 15, 2011|Associated Press

WASHINGTON — Interest rates on short-term Treasury bills fell in yesterday’s auction to the lowest levels in three months.

The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.130 percent, down from 0.150 percent last week.

Another $30 billion in six-month bills was auctioned at a discount rate of 0.165 percent, down from 0.175 percent.

Both rates were the lowest since Nov. 8, when three-month bills averaged 0.125 percent and six-month bills averaged 0.160 percent.

The discount rates reflect that the bills sell for less than face value.

For a $10,000 bill, the three-month price was $9,996.71 while a six-month bill sold for $9,991.65.

Separately, the Federal Reserve said yesterday that the average yield for one-year Treasury bills edged up to 0.29 percent last week from 0.28 percent the previous week.