Rates fall at weekly US Treasury bill 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 five weeks.

The Treasury Department auctioned $40 billion in three-month bills at a discount rate of 0.305 percent, down from 0.375 percent last week. Another $36 billion in six-month bills was auctioned at a discount rate of 0.500 percent, down from 0.540 percent last week.

The three-month rate was the lowest since those bills averaged 0.300 percent five weeks ago on Aug. 15. The six-month rate was the lowest since those bills averaged 0.470 percent on Sept. 6.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,992.29, while a six-month bill sold for $9,974.22. That would equal an annualized rate of 0.309 percent for the three-month bills and 0.508 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 up to 0.61 percent last week from 0.57 percent the previous week.

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

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