Short-term T-bill rates at 5-week low

June 21, 2011|Associated Press

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

The Treasury Department auctioned $27 billion in three-month bills at a discount rate of 0.035 percent, down from 0.050 percent last week. Another $24 billion in six-month bills was auctioned at 0.100 percent, down from 0.105 percent.

The three-month rate was the lowest since these bills averaged 0.030 percent on May 16. The six-month rate was the lowest since those bills averaged 0.070 percent, also on May 16.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.11, while the six-month bill sold for $9,994.94. That would equal an annualized rate of 0.036 percent for the three-month bills and 0.102 percent for the six-month bills.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, was unchanged last week at 0.18 percent.