Rates on short-term bills drop at weekly Treasury auction

WASHINGTON (AP) " Interest rates on short-term Treasury bills fell in Monday's auction with rates on three-month bills dropping to their lowest level in four weeks.

The Treasury Department auctioned $37 billion in three-month bills at a discount rate of 0.285 percent, down from 0.320 percent last week. Another $32 billion in six-month bills was auctioned at a discount rate of 0.395 percent, down from 0.425 percent last week.

The three-month rate was the lowest since those bills averaged 0.270 percent on July 5. The six-month rate was the lowest since those bills averaged 0.390 percent on July 11.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,992.80, while a six-month bill sold for $9,980.03. That would equal an annualized rate of 0.289 percent for the three-month bills and 0.401 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 down to 0.53 percent last week from 0.55 percent the previous week.

This story has been automatically published from the Associated Press wire which uses US spellings

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